What is the normal balance of accounts receivable?
Understand the Problem
The question is asking about the typical or expected normal balance for the accounts receivable account in accounting. This involves understanding whether accounts receivable usually has a debit or credit balance and what that signifies.
Answer
a debit
The final answer is a debit
Answer for screen readers
The final answer is a debit
More Information
Accounts Receivable is an asset account, and assets have a normal debit balance. This means when the Accounts Receivable account is increased, it is typically recorded as a debit entry.
Tips
A common mistake is thinking that an increase in Accounts Receivable should be credited. Always remember that increasing asset accounts are debited.
Sources
- Normal Balances of Accounts - faculty.ung.edu
- Normal Debit and Credit Balances for the Accounts | AccountingCoach - accountingcoach.com
- Is Accounts Receivable a Debit or Credit? What to Know About AR - versapay.com
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