Answer:
The difference between the face value of accounts receivable and the net realizable value of accounts receivable.
Explanation:
The allowance for doubtful debt represents the balance of credit sales to customers that may be uncollectible. Once determined, the entries required are
Debt Bad debt expense (P/L)
Credit Doubtful debt allowance (B/S).
Hence Allowance for Doubtful Accounts represents the difference between the face value of accounts receivable and the net realizable value of accounts receivable.
