reserve for doubtful debts debit or credit in trial balance
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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.
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Answer:
reserve for doubtful debts is credit in trial balance
Explanation: because it create a future loss or liability
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