For a classified Balance Sheet, you need to separate out the types of assets you have. Current assets are those that will be received or used within on year. As a general rule, Accounts Receivables are collected within one year and so therefore are current.
The Allowance for Doubtful Accounts is a contra asset which offsets the balance in the Accounts Receivable. It's still a current asset (since it belongs with the A/R), but it's a credit balance so that it subtracts from the receivables. If all the receivables won't be collected, then they aren't worth as much, so we use the allowance account to offset the balance of receivables, by an amount estimated as being uncollectible.
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