An account used in combination with another account. For example, the account Allowance for Doubtful Accounts is used with Accounts Receivable in order to present the net amount of the accounts receivable. The account Accumulated Depreciation is used with property, plant and equipment to indicate how much of an asset’s cost has been allocated to Depreciation Expense. Here the account Accumulated Depreciation is used to report the assets’ book value (not the assets’ market value).
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