Bookkeeping

Journal entry for allowance for doubtful accounts

While assets have natural debit balances and increase with a debit, contra assets have natural credit balance and increase with a credit. Then, the company establishes the allowance by crediting an allowance account often called ‘Allowance for Doubtful Accounts’. Though this allowance for doubtful accounts is presented on the balance sheet with other assets, it […]

Why are women cited less frequently than men?

And if your retained earnings is lower than your assets, it could mean that you’re spending too much or not making enough money. Whatever your reason for starting a business, there’s one thing that’s certain—you want to succeed. But Fundera reports that “about 20% of small businesses fail in their first year,” and 50% close […]

Scroll to top