Contra accounts adjust asset values, like equipment depreciation reducing fixed assets. Increased allowance for doubtful accounts may signal rising uncollectable receivables. Companies use contra ...

Posting depreciation means to account for depreciation using the proper journal entries. Companies must depreciate their assets annually. Depreciating assets will match the cost to purchase the asset ...

In a company's financial records, contra-revenues and expenses produce the same ultimate result: They both reduce net income. The difference is that expenses represent money that flows out of a ...