The allowance for doubtful accounts is a contra to: Accounts Receivable
An allowance for doubtful accounts is considered a “contra asset,” because it brings reduction in the amount of an asset. The allowance represents management's estimate of the amount of accounts receivable that will not be paid by customers.
The above means that the allowance for Doubtful Accounts is directly related to the asset account entitled Accounts Receivable.
Hence, the Allowance for Doubtful Accounts account is contra to accounts receivable.
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