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28 February, 16:15

What is the type of account and normal balance of Allowance for Doubtful Accounts? A. Contra asset, creditB. Asset, debitC. Asset, creditD. Contra asset, debit

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  1. 28 February, 17:52
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    A. Contra asset, credit

    Explanation:

    The allowance for doubtful accounts is an estimate of the amount of accounts receivable which are expected to not be collectible. Is a contra current asset account with credit balance that adjusts accounts receivable.

    The allowance for doubtful accounts appears on a company's balance sheet immediately below the accounts receivable line item reducing its amount
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