What Is the Type of Account and Normal Balance of Allowance

question 152

Multiple Choice

What is the type of account and normal balance of Allowance for Doubtful Accounts?

• A) contra asset, credit
• B) asset, debit
• C) asset, credit
• D) contra asset, debit

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Definitions:

Maximize Profit

The process or strategy undertaken by businesses to increase their net earnings and achieve the highest possible profit margin.

Workers

Individuals engaged in a physical or mental activity with the aim of producing goods or providing services in exchange for wages.

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An hypothetical or specific establishment that specializes in the preparation and sale of baked goods such as bread, pies, and cakes.

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