Accountancy, asked by shrutibaliga288, 10 months ago

reserve for doubtful debts debit or credit in trial balance​

Answers

Answered by jkaushal3gmailcom
0

Answer:

The receivables account has a natural debit balance, while the bad debt reserve has a natural credit balance. The result is a net receivable balance reported in the balance sheet. For example, a balance sheet may reveal $1,000,000 of accounts receivable, against which is offset $50,000 of bad debt reserve.

Explanation:

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Answered by anjalimishra1532000
1

Answer:

reserve for doubtful debts is credit in trial balance

Explanation: because it create a future loss or liability

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