The following accounts illustrate adjusting entries, identify the contra account: Adjustment in supplies. Accumulated Depretiation expense...

The following accounts illustrate adjusting entries, identify the contra account:

Adjustment in supplies.

Accumulated Depretiation expense

Pre-Paid Insurance

Accumulated Depretiation, Equipment

Solutions

Expert Solution

--Accumulated Depreciation - Equipment is the account that has a nature of 'contra' account.

--Its a 'contra asset' account. Assets have normal debit balance, but adjustment entries will lead to the normal credit balance of this account.

--The accumulated CREDIT balance in this account is shown as a deduction from "Equipment" account, thereby decreasing the asset balance, and hence included in category of "Contra" account.

ekkarill92 answered 1 year ago

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