Contra Accounts: Definition, Types, Example The Motley Fool
Examples of contra liabilities are Discounts on Bonds and Notes Payable and Short-Term Portion of Long-Term Debt. For example, when a customer’s cheque bounces, a contra account steps in to reconcile the situation financially. The initial receipt and the subsequent deduction are both logged, revealing the net effect of the transaction without distorting the total …
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