The allowance for doubtful accounts normally has a credit balance, and is a/an: Select one: a....

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Question

The allowance for doubtful accounts normally has a credit balance, and is a/an: Select one: a....

The allowance for doubtful accounts normally has a credit balance, and is a/an:

Select one:

a. Asset account.

b. Liability account.

c. Contra liability account.

d. Contra asset account.

business accounting

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Answer 1

Answer #1

d. Contra asset account.

Allowance for doubtful accounts is a contra asset account because it is directly linked to and the opposite of accounts receivable.

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Answer 2

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