Which contra account is associated with Accounts Receivable?

The contra account associated with Accounts Receivable is the Allowance for Doubtful Accounts. This account is used to estimate the amount of accounts receivable that may ultimately be uncollectible. By recording this allowance, businesses can present a more accurate picture of their actual collectible accounts receivable on the balance sheet.

The Allowance for Doubtful Accounts reduces the total amount of Accounts Receivable reported, reflecting the likelihood that certain debts may not be paid. This use of a contra account is important for proper financial reporting and helps in the management of credit risk.

In contrast, the other options do not relate specifically to Accounts Receivable. Accumulated Depreciation - Equipment pertains to the depreciation of physical assets and does not affect accounts receivable. Discount on Bonds Payable is related to bond liabilities, while Treasury Stock involves equity transactions, both of which do not link to accounts receivable.