contra account

contra account definition - business

contra account

In accounting, a balance sheet account with a balance that is opposite normal accounts. For example, allowance for doubtful accounts is a contra account. The net value of accounts receivable is equal to accounts receivable less allowance for doubtful accounts.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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