Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen.
Question
Solution 1
Allowance for Uncollectible Accounts is a contra asset account that typically has a credit balance because it offsets accounts receivable. However, it can have a debit balance before year-end adjustments due to several reasons:
- Higher Actual Write-offs: If the actual amount of uncollectible Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI
Similar Questions
Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen.
Allowance for Doubtful Accounts is a(n) -asset account and has a normal balance. (Enter only one word per blank.)
Accumulated depreciation is an: A. contra revenue account. B. liability account. C. contra asset account. D. expense account.
A debit is not the normal balance for which account listed below? Group of answer choices Dividends Cash Accounts Receivable Service Revenue
What is the natural account balance for provisions? A. Debit and Credit B. Credit C. No balance D. Debit
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.