The account offsets the balance in the respective asset account that it is paired with on the balance sheet. Last, for contra revenue accounts there are sales discounts, sales allowances, or sales returns. These contra revenue accounts tend to have a debit balance and are used to calculate net sales. Accountants use contra accounts rather than reduce the value of the original account directly to keep financial accounting records clean. If a contra account is not used, it can be difficult to determine historical costs, which can make tax preparation more difficult and time-consuming.
The final four stages of the NES version (the Snowfield, Energy Zone, Hangar, and Alien Lair) are based on the different areas featured in the arcade version’s final stage. Ocean’s ports were patterned after the original arcade version of the game. An IBM PC version was developed by Banana Development Inc and released in North America. The Japanese MSX2 version had an exclusive photo cover; despite that, Wakelin’s illustration was used in the back cover. Another type of contra account is known as “contra revenue,” which is used to adjust gross revenue to calculate net revenue, i.e. the “final” revenue figure listed on the income statement.
There are four key types of contra accounts—contra asset, contra liability, contra equity, and contra revenue. Contra assets decrease the balance of a fixed or capital asset, carrying a credit balance. Contra revenue accounts reduce revenue accounts and have a debit balance. Contra asset accounts include allowance for doubtful accounts and accumulated depreciation.
GAAP, the allowance for doubtful accounts represents management’s estimate of the percentage of “uncollectible” accounts receivable (i.e. the credit purchases from customers that are not expected to be paid). Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. Contra accounts provide more detail to accounting figures and improve transparency in financial reporting. Contra was released for the Nintendo Entertainment System in North America in February 1988.
Games & Quizzes
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.
Stage 5 is another 3D stage set inside another base, while Stage 6 is another boss battle, this time against a pair of heads that split into two images each. Those who are struggling with recording contra accounts may benefit from utilizing some of the best accounting software currently available. The allowance method of accounting allows a company to estimate what amount is reasonable to book into the contra account. The percentage of sales method assumes that the company cannot collect payment for a fixed percentage of goods or services that it has sold.
Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. Still, the dollar amounts are separately broken out in the supplementary sections most of the time for greater transparency in financial reporting. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘contra.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Gain unlimited access to more than 250 productivity Templates, CFI’s full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.
The third stage is set in the core of the base in a fixed screen, where the player must destroy the enemy’s defense system in order to expose the final target, a giant eyeball that shoots fireballs. Whereas assets normally have positive debit balances, contra assets, though still reported along with other assets, have an opposite type of natural balance. In bookkeeping, a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit (negative) balance.
What Is the Benefit of Using a Contra Account?
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- Contra assets decrease the balance of a fixed or capital asset, carrying a credit balance.
- Stage 5 is another 3D stage set inside another base, while Stage 6 is another boss battle, this time against a pair of heads that split into two images each.
- A contra account is an entry on the general ledger with a balance contrary to the normal balance for that categorization (i.e. asset, liability, or equity).
- By keeping the original dollar amount intact in the original account and reducing the figure in a separate account, the financial information is more transparent for financial reporting purposes.
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.
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 https://www.kelleysbookkeeping.com/accounting-starting-salaries-for-2022/ 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.
Video Editing
Cutscenes are also shown between stages, depicting Bill (or Lance) giving a status report of his current situation to headquarters, and, in later stages, shooting his gun towards the screen. The level designs themselves are drastically different from the arcade version too. The two base stages for example (Stage 2 and 4), no longer have their mazelike structures, nor is there any time limit involved. The boss of the waterfall stage was also changed from a diamond-shaped sensor to an alien statue.
Unlike the arcade and NES versions, the MSX2 version is single-player only (Lance Bean does not appear in any form), and has no continuation feature; if a player loses all lives, the game will end immediately. However, the Game Master II utility cartridge can be used to save progress via its 10 tips for managing small business finances S-RAM backup feature. The NES version recomposes the seven stages of the arcade version into eight stages. Stages 2 and 3 were combined into one stage, resulting in the renumbering of the Waterfall level from Stage 4 to Stage 3, while Stages 5 and 6 were combined into the new Stage 4.
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.
