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What kind of an account (asset liability etc.) is Allowance for Doubtful Accounts and is its normal balance a debit or a credit?
Wiki User
∙ 8y ago
What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
Wiki User
∙ 8y ago
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How do you record allowance for doubtful accounts?
Recording an allowance for doubtful accounts can vary depending on the chart of accounts for the specific place of business. Usually to record an allowance for a doubtful account is to debit revenue and credit the write off 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.
What is the type of account in normal balance of allowance for doubtful accounts?
contra asset, credit
If the allowance method of accounting for uncollectible receivables is used what general ledger account is credited to write off a customer's account as uncollectible?
Allowance for Doubtful Accounts
What is the general ledger journal entry to write off accounts receivable?
Under the allowance method, entry would be: Allowance for Doubtful Accounts (DR) Account Receivable (CR)
How do you record allowance for doubtful accounts?
Recording an allowance for doubtful accounts can vary depending on the chart of accounts for the specific place of business. Usually to record an allowance for a doubtful account is to debit revenue and credit the write off 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.
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
If the allowance method of accounting for uncollectible receivables is used what general ledger account is credited to write off a customer's account as uncollectible?
Allowance for Doubtful Accounts
What is the general ledger journal entry to write off accounts receivable?
Under the allowance method, entry would be: Allowance for Doubtful Accounts (DR) Account Receivable (CR)
Allowance for doubtful accounts is listed on the balance sheet under what caption?
Answer:The allowance for uncollectible accounts is a contra T-account to accounts receivable. Both are presented under current assets. The allowance can also be subtracted from accounts receivables, showing the net value (common for listed companies).
Allowance for Doubtful Accounts is debited under the direct write-off method when an account is determined to be uncollectible True or False?
true
What is the formula for calculating net account receivable?
Net Accounts Receivable is found by subtracting the "noncollectable" amount in AR from the balance. Also referred to sometimes as ADA (allowance for doubtful accounts).
Is there an accounting term allowance for undoubtful accounts?
There is an ADA account, however ADA stands for Allowance for Doubtful Accounts, you use the term "undoubtful". Unless you mean "doubtful" accounts there are no terms for undoubtful ones, undoubtful meaning "having no doubt". ADA is the account used by a company in which they usually allow a certain percentage of sales to cover those accounts they don't expect to receive payment for. In other words people who order on credit and then don't pay.
Why bad debts comes on asset side?
The Allowance for Doubtful Account is on the asset side of the balance sheet because this account is a contra account to accounts receivable. In accrual accounting there is an assumption that not all receivables will be paid.
What is the allowances doubtful account receivable?
accounts payable
