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Q: When a purchase return and allowance becomes a contra account?
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Allowance for doubtful accounts is what type of account?

Asset Contra account to Accounts Receivable (Contra-Asset). Normal balance is credit.


What is the type of account in normal balance of allowance for doubtful accounts?

contra asset, credit


Is allowance for bad debts a asset?

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Freight account is a contra purchase account true or false?

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What type of account is Purchases returns and allowances?

A contra purchase account


What part of balance sheet is allowance for doubtful accounts reported?

The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.


Is delivery equipment a contra asset account?

No, it is not a contra asset account. By definition, a contra asset account is an account which typically carries a credit balance and is used to accumulate amounts that are reductions of assets. Two common contra asset accounts are Allowance for Uncollectible Accounts Receivable and Accumulated Depreciation. If the delivery equipment is owned by your company then it should be considered an asset.


Is a purchase discount account an asset or liability?

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Is purchase return is contra account?

Purchase return is a contra account because it reduces the balance in the Purchase account in an attempt to determine cost of goods sold. This is like sales returns and allowances being used to determine net sales on an entity's income statement.


Purchase Return and Allowances is a contra account and its normal balance would be...?

a debit and credit


Purchase Return and Allowances is a contra account and its normal balance would be.?

a debit and credit


Purchase Return and Allowances is a contra account and its normal balance would be?

a debit and credit