The allowance for doubtful accounts – often called a “bad debt reserve” – would be considered a contra asset since it causes the accounts receivable (A/R) balance to decline. The difference between an asset’s account balance and the contra account balance is known as the book value. A debit will be made to the bad debt expense for $4,000 to balance the journal entry. Although the accounts receivable is not due in September, the company still has to report credit losses of $4,000 as bad debts expense in its income statement for the month.

For example, if a company just reported equipment at its net amount, users would not be able to observe the purchase price, the amount of depreciation attributed to that equipment, and the remaining useful life. Contra asset accounts allow users to see how much of an asset was written off, its remaining useful life, and the value of the asset. Key examples of contra asset accounts include allowance for doubtful accounts and accumulated depreciation. Accumulated depreciation reflects the reduction in value of a fixed asset. Accumulated depreciation is a contra asset account used to record the amount of depreciation to date on a fixed asset.

Other definitions for contra- (3 of

The game can be played by one or two players, but due to the graphical limitations of the NES, Bill and Lance lost their individualized character designs. Instead, they are both depicted as shirtless commandos distinguished by the colors of their pants (blue for Bill and red for Lance). When one player loses all of their lives, they are given the option to use the other player’s stock to keep fighting. The player must fight a giant alien head that spawns larvae from its mouth before reaching the final target, a cardiac creature that must be destroyed in order to complete the mission.

Excess, stored inventory will near the end of its lifespan at some point and, in turn, result in expired or unsellable goods. In this scenario, a write-down is recorded to the reserve for obsolete inventory. Allowance for doubtful accounts (ADA) is a contra asset account used to create an allowance for customers who are not expected to pay the money owed for purchased goods or services. The allowance for doubtful accounts appears on the balance sheet and reduces the amount of receivables.

If accounts receivable is $40,000 and allowance for doubtful accounts is $4,000, the net book value reported on the balance sheet will be $36,000. Rather than one-hit kills, there is an energy gauge, which allows Bill Rizer to take more than one shot or hit before losing a life. There are two main power-ups in the MSX2 version, a Falcon-shaped power-up that increases the player’s running and shooting speed, as well as a gun-shaped power-up which allows the player to change their current weapon.

Is a Contra Balance Negative or Positive?

Now anytime you want to search the web, know the weather forecast, or get the baseball scores from last night, all you have to do is say “Hey, Cortana,” and ask your question.

During side view stages, the player can shoot leftward, rightward or upward while standing, as well as horizontally and diagonally while running. The player can also shoot in any of eight directions, how to pay yourself as a business owner including downwards, while jumping. Pressing the joystick downwards while standing will cause the character to lie down on his stomach, allowing him to avoid enemy fire and shoot low targets.

1. The level designs themselves are drastically different from the arcade version too.
2. This type of account could be called the allowance for doubtful accounts or a bad debt reserve.
3. Accounts receivable (A/R) has a debit balance, but the allowance for doubtful accounts carries a creditbalance.
4. Reserve for obsolete inventory is a contra asset account used to write down the inventory account if inventory is considered obsolete.

This version was produced in-house by Konami, and features several differences from the arcade release in order to better suit the NES’s hardware. The arcade game was a commercial success worldwide, becoming one of the top four highest-grossing dedicated arcade games of 1987 in the United States. The NES version was also a critical and commercial success, with Electronic Gaming Monthly awarding it for being the Best Action Game of 1988. A contra account enables a company to report the original amount while also reporting the appropriate downward adjustment. Get instant access to video lessons taught by experienced investment bankers.

Other definitions for contra (2 of

Stages 1 through 6 are drawn directly from the arcade version, whereas Stages 7 through 9 are based on the different areas featured in the final stage of the arcade version in a matter similar to the final four stages of the NES version. https://www.quick-bookkeeping.net/what-is-a-credit-memo-definition-and-how-to-create/ Stages 10 through 19 are new to this version and take place primarily in an underground facility underneath the Galuga Archipelago. Inputting the code at the title screen starts the player with thirty lives instead of the usual three.

However, that $1.4 billion is used to reduce the balance of gross accounts receivable. Therefore, contra accounts, though they represent a positive amount, are used to net reduce a gross amount. For this reason, contra accounts are primarily seen as having negative balances because they are used to reduce the balance of another account. Some of the most common contra assets include accumulated depreciation, allowance for doubtful accounts, and reserve for obsolete inventory.

How to setup and use Cortana on Windows 10 PC

This type of account could be called the allowance for doubtful accounts or a bad debt reserve. The balance in the allowance for doubtful accounts represents the dollar amount of the current accounts receivable balance that is expected to be uncollectible. The amount is reported on the balance sheet in the asset section immediately below accounts receivable.

After picking up the weapon power-up, the player can choose between the default Normal Gun or four other weapons. The Spread Gun is not featured in this version, replaced by the Rear Gun similar to the tailgun in Gradius II, which fires in two directions at the same time. The player loses a life if their character (Bill or Lance) comes into contact with enemies or their missiles, fails to complete a base stage before the time limit, or falls into a bottomless pit. When that happens, the character will revert to his default weapon on his next life. After losing all lives, the player can continue by inserting more coins (if necessary) and pressing Start, but only up to three times. A second player can join in anytime, but if one player loses all of their lives, they must wait until the other player loses their lives as well to continue together.

Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. Master accounting topics that pose a particular challenge to finance professionals. We can see how the $10,000 allowance for doubtful accounts offsets the $100,000 A/R account from our illustrative example above (i.e. the account decreases the carrying value of A/R).