What is the type of account and normal balance of Allowance for Doubtful Accounts?
A) Contra asset, credit
B) Asset, debit
C) Asset, credit
D) Contra asset, debit

Question

Quizplus · Accepted Answer

Allowance for Doubtful Accounts is a contra asset account as it is associated with accounts receivable and reduces the amount of accounts receivable. Its normal balance is credit as it represents a reserve for potential bad debts.

What Is the Type of Account and Normal Balance of Allowance