Which of the following accounts is expected to present a credit balance?
A) Accounts receivable
B) Provision for doubtful debts
C) Doubtful debt accounts
D) Selling expenses

Question

Quizplus · Accepted Answer

Provision for doubtful debts is a contra account to accounts receivable and is expected to have a credit balance. This account is used to record the estimated amount of bad debts that are expected to occur from sales made on credit.

Which of the Following Accounts Is Expected to Present a Credit