Question

Inventory on hand can be obtained from detailed inventory records when a---- inventory system is maintained.

Every sales transaction should be supported by a ------that provides written evidence of the sale.

Sales Returns and Allowances and Sales Discounts are both --- accounts and have --- normal balances

Answer 1

a. Inventory on hand can be obtained from detailed inventory records when perpetual inventory system is maintained.

Perpetual inventory system provides details on each movement of stock.

b. Every sales transaction should be supported by a business document that provides written evidence of the sale.

Business document provides the details about quantity sold with amount of sales alongside terms of sale

c. Sales Returns and Allowances and Sales Discounts are both contra revenue accounts and have debit normal balances

Contra revenue account means account created against sales. These both accounts are debited to sales account.