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__________ is a contra asset account representing the amount of accounts receivable that we do not expect to collect.

User Oferiko
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Answer:

Allowance for uncollectible accounts

Step-by-step explanation:

This account is a contra asset account which says that the account receivable amount is not collected in near future

It is shown in the asset side of the balance sheet

Assets side

Current Assets

Accounts receivable XXXXX

Less: Allowance for doubtful debts (XXXXX)

Net accounts receivable XXXXX

It is an estimated amount which is not to be paid by the customer in respect to goods delivered to them

The journal entry would be

Bad debt expense A/c Dr XXXXX

To Allowance for uncollectible accounts A/c XXXXX

(Being the uncollected amount is recorded)

User Planben
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