asked 103k views
5 votes
What is the normal balance for the allowance for doubtful accounts (debit or credit), and why?

asked
User Geier
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8.6k points

1 Answer

5 votes

The allowance for doubtful accounts has a normal credit account.

This account is a contra-asset account. Since assets have a normal debit balance, this account would have a normal credit balance.

answered
User Jsdario
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7.8k points
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