114558 Contra Account: Definition and Use Contra Account: Definition and Use A contra account is an account that is an offset to another balance sheet account, meaning that its normal balance is the opposite of the account it is offsetting.
Contra accounts always have a normal balance that is opposite to what they are contra to.
The use of contra asset account gives a more lucid picture of valuation changes.
A contra-asset account is an asset account that typically (is presumed to have) a credit balance. This differs in that a usual account has a debit account balance. This is a contra - asset account, and therefore runs a normal credit balance.
Is that account best fully labeled as an Asset account, an Asset Contra account, an Asset Adjunct account, or an Asset Control account?
133876 Accounting: provision for uncollectible accounts receivable Accounting: provision for uncollectible accounts receivable Opening balance is a credit of $51,000 (contra asset account) Provision entry Debit uncollectible accounts expense
Mary Smith, Drawing Contra Equity Debit Since this is contra equity and so increases with debit l. Equipment Asset Debit m.
Multiple Choice Questions in Accounting relating to current assets and liabilities, adjusting entries, interest calculation etc
Sales Discounts Contra accounts have an opposite normal balance compared to the accounts to which they are contra The solution provides explanations on multiple choice questions on accounts receivable, inventory, unearned revenue
Depreciation expense reduces the net income and the accumulated depreciation account increases which is a contra long term asset account. The solution explains the entry to record depreciation expense.
The tutorial is attached in excel to follow the accounting equation format. The return would likely be booked to a contra sales account ("sales return") rather than directly to sales.