Question

amerchandiser frequently has aneed to use cobtra accounts related to the sale of goods.identify the contra...

amerchandiser frequently has aneed to use cobtra accounts related to the sale of goods.identify the contra accounts that have normal debit balances and explain why they are not considered expeneses
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Contra Sales return account has debit balance. Which records the sales returned to the business & refund initiated.

They are not considered expenses as expenses are the cost incurred to create revenue. Sale returns are not incurred to create revenue. So it would be wrong to show them as an expense.

Hope this makes contribution to your success. Hit Like to motivates the experts to provide quality solutions.

Any feedback will also be appreciated.

Best of luck?!  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is a contra-asset? Dividends Unearned revenue Accumulated depreciation Merchandise Inventory Temporary accounts...
Which of the following is a contra-asset? Dividends Unearned revenue Accumulated depreciation Merchandise Inventory Temporary accounts are: Balance sheet accounts Income statement accounts New accounts Assets What is accrued income? Income earned but, not received Received, but not earned Earned and received Income that has been received What is deferred Income? Earned, but not received Income received, but not earned Income received after was earned None of the above What entry would be made to acknowledge accrued wages? Debit Expense,...
INSTRUCTIONS - For each of the following twenty (20) accounts of Absorka Company, indicate which financial...
INSTRUCTIONS - For each of the following twenty (20) accounts of Absorka Company, indicate which financial statement the item belongs on, the classification or sub-classification (for assets & liabilities) of the account and the account’s normal balance. The first row is an example. Financial Statements: Balance Sheet (BS), Income Statement (IS), Retained Earnings Statement (RE) Account Classification (if an account is a contra account, be sure to state "contra" in front of the account classification, i.e. contra long-term liability): Current...
True or False 1. A company makes a credit sale for $500. Future collection from the...
True or False 1. A company makes a credit sale for $500. Future collection from the customer is probable. The company will not record revenue from the transaction until it collects cash from the customer. 2. Credit sales involve benefits and costs. A benefit of selling on credit is that the seller makes it more convenient for customers to purchase goods and services. A cost of selling on credit is that there is a delay in collecting cash from customers....
for accumulation depreciation accounts, if they're an asset account then why does it have a normal...
for accumulation depreciation accounts, if they're an asset account then why does it have a normal credit balance? (or is it a normal debit balance)
USE the concept of demand-side gaps to explain why it is frequently a bad idea to...
USE the concept of demand-side gaps to explain why it is frequently a bad idea to transplant a channel design from one country directly to another without any modification.
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 21 D Accounts payable $ 65 I Accounts receivable $ 25 I Accrued liabilities $ 25 D Inventory $ 60 D Income taxes payable $ 30 I Prepaid expenses $ 20 I Bonds payable $ 212 I Long-term investments $ 22 D Common stock $ 100 D Property, plant, and equipment $ 410 I Retained earnings...
Date Accounts involved in transaction? Classification of the account? Increasing or Decreasing? Debit or Credit the...
Date Accounts involved in transaction? Classification of the account? Increasing or Decreasing? Debit or Credit the Account? Amount? July 2 Received $14,000 (cash) contribution from Brett Lawrence, owner, in exchange for capital. Tell me what happen to the business today in your own words? Example: The business got cash from the owner. Cash Asset Increasing Debit $          12,000 London, Capital Capital Increasing Credit $          12,000 July 4 Paid (cash) for utilities expense of $370. July 5 Purchased equipment on account,...
Account Debit Credit Cash 23000 Accounts Receivable 49700 Prepaid insurance 11300 Equipment 150500 Accounts payable 6050...
Account Debit Credit Cash 23000 Accounts Receivable 49700 Prepaid insurance 11300 Equipment 150500 Accounts payable 6050 Salaries Payable 4250 Common Stock 110,000 Dividends 18,500 Service Revenue 236,600 Salary expense 98,930 Miscellaneous expense 4970 424,020 424,020 1. IDENTIFY errors in trial balance. All accounts have normal balances. 2. Prepare a corrected trial balance
I have a question about cash flows. If the cash generated from not paying accounts payable...
I have a question about cash flows. If the cash generated from not paying accounts payable is considered excessive, not normal or not sustainable(i.e. the company must pay accounts payable eventually and the current year adjustment is far in excess of what could be considered as normal), you will need to "adjust" operating cash flow to remove the excess amount related to payable accounts. How can adjust oerating cash flow? Is there any calculation that I have to do? Please...
Which of the four collaborative conflict-management principles do you most frequently use? Which of the principles...
Which of the four collaborative conflict-management principles do you most frequently use? Which of the principles do you least frequently use? Describe a situation in which you were dealing with a difficult group member and it didn’t go as well as you hoped. Describe a strategy why it may have been more effective?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT