The balance on the allowance for receivables account represents an expense and is therefore posted to the debit side of the trial balance.

Name: The balance on the allowance for receivables account represents an expense and is therefore posted to the debit side of the trial balance.
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Question

Quizplus · Accepted Answer

The balance on the allowance for receivables account represents a contra asset, not an expense, and is therefore posted to the credit side of the trial balance to reduce the total receivables balance.

The Balance on the Allowance for Receivables Account Represents an Expense