What is a contra account? Why is estimated bad debts expense credited to a contra account rather

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What is a contra account? Why is estimated bad debts expense credited to a contra account rather than to the Accounts Receivable controlling account?

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Financial Accounting

ISBN: 9780256091939

5th Edition

Authors: Kermit D. Larson, Paul B. W. Miller

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Question Posted: Jun 11, 2024 12:02 AM

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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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What is a contra account? Why is estimated bad debts expense credited to a contra account rather

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Financial Accounting

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