What Is a Contra Account? The Motley Fool
In its general ledger, the business will want to capture its gross sales figures and the actual value of the discount. The concepts of debits and credits in accounting dictate how transactions are recorded. For instance, to increase asset and expense accounts, we simply record a debit and to decrease those accounts, we can record a credit. Accountants use contra accounts rather than reduce the value of the original account directly to keep financial accounting records clean. The allowance for doubtful [...]
