what-is-the-primary-purpose-of-the-allowance-for-doubtful-accounts-in-financial-

Question

What is the primary purpose of the allowance for doubtful accounts in financial accounting?

Accepted Answer

To estimate the amount of accounts receivable that may not be collected.

Answer

To increase the total assets reported on the balance sheet.

Answer

To record all credit sales made during the period.

Answer

To directly write off bad debts as they occur.