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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
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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.

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