Learn what a contra liability account is, how it functions in financial accounting, and explore examples of this essential component in balancing liabilities.

A contra account offsets the balance of a corresponding account. Transactions made to contra accounts are presented on a company's financial statements under the related account. Contra accounts are ...

Allowance for doubtful accounts is a common contra asset listed on a company's balance sheet under accounts receivable. When a company sells its products or services to customers on credit, the ...