Bad Debts Expense is a contra account for Trade Accounts Receivable.

Name: Bad Debts Expense is a contra account for Trade Accounts Receivable.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

Bad Debts Expense is an expense account that represents the cost of accounts receivable that are not expected to be collected, while a contra account specifically for accounts receivable is the Allowance for Doubtful Accounts, which reduces the total accounts receivable balance.

Bad Debts Expense Is a Contra Account for Trade Accounts