Why is estimated bad debts expense credited to a contra account (Allowance for Doubtful Accounts) rather than

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Why is estimated bad debts expense credited to a contra account (Allowance for Doubtful Accounts) rather than to the Accounts Receivable account?

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Fundamental Accounting Principles

ISBN: 9780072946604

17th Edition

Authors: Kermit D. Larson, John J Wild, Barbara Chiappetta

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Question Posted: May 31, 2024 03:03 AM

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Why is estimated bad debts expense credited to a contra account (Allowance for Doubtful Accounts) rather than

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Fundamental Accounting Principles

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