Which of the following statements does not correctly describe the allowance for doubtful accounts balance It is reported on the balance sheet as a component of current assets It is a contra asset account It is reported on the balance sheet as a stockholders' equity account It is created as a result of the adjusting entry to record bad debt expense

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Which of the following statements does not correctly describe the allowance for doubtful accounts balance? It is reported on the balance sheet as a component

Which of the following statements does not correctly describe the allowance for doubtful accounts balance?

		It is reported on the balance sheet as a component of current assets.
		It is a contra-asset account.
		It is reported on the balance sheet as a stockholders' equity account.
		It is created as a result of the adjusting entry to record bad debt expense.

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