The normal balance and type of account for the Allowance for Doubtful Accounts is
A)debit, contra-asset.
B)credit, asset.
C)credit, revenue account.
D)credit, contra-asset.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is a contra-asset account, meaning it offsets the balance of an asset account (Accounts Receivable) and normally has a credit balance because it reduces the total amount of receivables reported on the balance sheet.

The Normal Balance and Type of Account for the Allowance