Question

Allowance is debit or credit in trial balance​

Answer 1

Answer:

An allowance for doubtful accounts, or bad debt reserve, is a contra asset account (either has a credit balance or balance of zero) that decreases your accounts receivable. When you create an allowance for doubtful accounts entry, you are estimating that some customers won't pay you the money they owe.

Explanation:

Answer 2

Answer:

A trial balance is a conglomerate of or list of debit and credit balances extracted from various accounts in the ledger including cash and bank balances from cash book. The rule to prepare trial balance is that the total of the debit balances and credit balances extracted from the ledger must tally. Because every transaction has a dual effect with each debit having a corresponding credit and vice versa.

A trial balance is a conglomerate of or list of debit and credit balances extracted from various accounts in the ledger including cash and bank balances from cash book. The rule to prepare trial balance is that the total of the debit balances and credit balances extracted from the ledger must tally. Because every transaction has a dual effect with each debit having a corresponding credit and vice versa.Therefore, at the end of the accounting period or at the end of each month, the balances of the ledger accounts are extracted, and trial balance is prepared to test as to if the total debits are equal to total credits or not.