Answer:
D. contra-asset, credit
Explanation:
An allowance for doubtful accounts is a contra-asset account with credit balance that nets against the total accounts receivables presented on the balance sheet to reflect those which are expected to not be collectible.
The allowance for doubtful accounts impact on the income statement only when is a charge to bad debt expense when is initially recorded. When an account receivable is written-off against the allowance for doubtful accounts only impact the balance sheet.
