The account Allowance for Doubtful Accounts is classified as a(n) contra account to Accounts Receivable. contra account to Bad Debts Expense. liability. expense. Depreciation is a process of determining the asset's fair value. asset valuation. cost allocation. determining the asset's residual value. Asset retirement costs are have no effect on a depreciable asset. O added to the cost of a depreciable asset. O deducted from the cost of a depreciation asset. O treated as a separate asset