Answer:
c. a contra-asset account.
Explanation:
The allowance for credit losses shows anticipated loss which is a portion of accounts receivable that is deemed to be uncollectible.
The account in actual terms is meant to reduce the balance of accounts receivable to a reasonable amount which is probable to be received from customers in respect of goods bought on credit.
Since the allowance is contra account which reduces accounts receivable, it is appropriate to say it is a contra-asset account
