Allowance for Doubtful Accounts is asubtracted from Cash bad
Allowance for Doubtful Accounts is
a.subtracted from Cash.
b.added to Accounts Receivable.
c.subtracted from Accounts Receivable.
d.subtracted from Notes Receivable.
Solution
c.Subracted from Accounts REceivable because allowance for doubtful account means there may or may not be a chance of not realzing amount from accounts receivable so it is deducted as an accountant anticipate losses when there is a chance.
