Quick Guide to Master Contra Accounts: Definition, Types & Examples Simplified
triduc BookkeepingWe will define what contra accounts are, the types of contra accounts and provide examples to illustrate. When accounting for assets, the difference between the asset's account balance and the contra account balance is referred to as the book value. There are two major methods of determining what should be booked into a contra account. The allowance for doubtful accounts is not specifically...