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Answer:

The "normal" status of an account is due to the implicitly of the formula:

assets = liabilities + equity.

  1. The allowance for doubtful accounts is a contra account to accounts receivable,
  2. Accumulated depreciation is a reduction of fixed assets,
  3. And dividends are a reduction of equity

The accounts above are called "contra asset" accounts meaning that: is a negative asset account that offsets the asset account with which it is paired.

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