Chapter 6, Problem 9MCQ

Which of the following best describes the proper presentation of accounts receivable in the financial statements?

1. a. Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet.
2. b. Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement.
3. c. Gross accounts receivable less bad debt expense in the asset section of the balance sheet.
4. d. Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet.