Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 11 - No. 10)

What type of account is 'Allowance for Doubtful Accounts'?
An asset account.
A liability account.
A contra-asset account.
An equity account.

Explanation

The Allowance for Doubtful Accounts reduces the value of Accounts Receivable, an asset.

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