see the site. http://ccba.jsu.edu/accounting/BADDEBTS.HTML
Yes allowance for doubtful accounts is shown in balance sheet
Credit
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
Allowance Method
Yes allowance for doubtful accounts is shown in balance sheet
Credit
balance sheet
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
Allowance Method
current asset
contra asset, credit
If you started the period with 10,000 in A/R with a 1,000 allowance for bad debts (10%) and then determined that 5% was an adequate allowance but A/R at the end of the period was 50,000, you would still have to increase your allowance by 1,500 to a balance of 2,500.
total estimated uncollectible accounts as of the end of the year
Asset Contra account to Accounts Receivable (Contra-Asset). Normal balance is credit.
estimate based on an analysis of recivable