Question

which of these listed is the sales allowance account? Group of answer choices Contra Revenue account...

which of these listed is the sales allowance account? Group of answer choices

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

Contra Revenue account representing seller reduction of customers’ balance owed or provision of a partial refund because of some deficiency in the company’s product or service.

Contra asset account representing the amount of accounts receivable that we do not expect to collect.

An account with a balance that is opposite, or contra, to that of its related (companion) revenue account

Homework Answers

Answer #1

The correct answer is

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

Explaination

Sales allowance is contra revenue account as it is reduced from sales account and then net sales are drived. any discount offered to payment with in specified period is entered in this account and then net with sales. So the correct answer is

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Identify each account listed as an Asset, a Contra-Asset, a Liability, an Equity, a Revenue, or...
Identify each account listed as an Asset, a Contra-Asset, a Liability, an Equity, a Revenue, or an Expense. Accounts Payable Accounts Receivable Accumulated Depreciation, Equipment Allowance for Doubtful Accounts Cash and Cash Equivalents Common Stock, no-par Cost of Goods Sold Depreciation Expense Dividends Equipment Income Tax Expense Insurance Expense Inventories Land Notes Payable Other Operating Expense Prepaid Insurance Retained Earnings Salary Expense Salary Payable Sales Revenue Unearned Revenue
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....
Which of the following statements about the Allowance for Doubtful Accounts is true? Multiple Choice It...
Which of the following statements about the Allowance for Doubtful Accounts is true? Multiple Choice It is a contra-revenue account. The balance in the account increases Net Accounts Receivable. The balance in the account represents the amount of accounts receivable that the company expects to collect. The account is credited with an estimated amount when recording bad debt expense under the allowance method. It is an expense account. Kelton Inc. reported net credit sales of $340,000 for the current year....
During 2010, a company provides services of $400,000 on account. Of this amount, $50,000 remains uncollected...
During 2010, a company provides services of $400,000 on account. Of this amount, $50,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2010, is provided below. Before bad debt expense is recorded, the allowance for doubtful accounts had a $300 credit balance. Age Group Amount Receivable Estimated % Uncollectible Not yet due 30,000 2% 0-30 days past due 10,000 5% 31-60 days past due 7,000 10% More than 60 days past due 3,000...
Aging of Receivables; Estimating The contra asset account for accounts receivable.Allowance for Doubtful Accounts Wig Creations...
Aging of Receivables; Estimating The contra asset account for accounts receivable.Allowance for Doubtful Accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 ABC Beauty 20,200 20,200 Angel Wigs 7,800 7,800 Zodiac...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct...
1-25 True or False 1. Sales revenue is an inflow of assets. 2. The three distinct types of cost to a manufacturer are direct materials, direct labor, and manufacturing overhead.                       3. Sales Returns and Allowances is a contra-asset account. 4. Like sales revenue, cost of goods sold represents an inflow of assets. 5. With the periodic inventory system the inventory account is updated after each sale or purchase. 6. When merchandise is sold FOB shipping point, the buyer is responsible...
1. Which of the following is considered cash?             a.   120-day Treasury bill             b.   Money...
1. Which of the following is considered cash?             a.   120-day Treasury bill             b.   Money market checking accounts             c.   short term investments             d.   Receivables 2. Deposits held as compensating balances a.   are usually some percentage of the committed amount. b.   if legally restricted and held against short-term credit may be included as cash. c.   if legally restricted and held against long-term credit may be included among current assets. d.   none of these. 3. Cash that is restricted...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the...
1. Gore Inc. sold $7,200 of merchandise on account, terms 2/10,n/30. If the customer paid the amount owed within the discount period, the entry to record the receipt of cash would include a: debit to cash of $7,200 debit to sales discount of $144 credit to accounts receivable of $144 credit to accounts payable of $7,056       2.   Cost of goods sold:             A) Is another term for sales.             B)   Is the term used for the cost of buying...
ANSWER ASAP Record the needed adjusting journal entries. The trial balance of Veggies-R-Us., at December 31,...
ANSWER ASAP Record the needed adjusting journal entries. The trial balance of Veggies-R-Us., at December 31, 20XX, and the data needed for the year-end adjustments follow. (Round all results to the nearest whole dollar amount.) The dollar value of supplies on hand at year end = $5,250; this was determined after taking a physical inventory. Prepaid rent still in force at December 31, $900. Depreciation on furniture for the year, $210. Depreciation on building for the year, $1,980. Depreciation on...
  Cash $ 21,020 Unearned Revenue (35 units) $ 5,150      Accounts Receivable $ 12,050 Accounts Payable...
  Cash $ 21,020 Unearned Revenue (35 units) $ 5,150      Accounts Receivable $ 12,050 Accounts Payable (Jan Rent) $ 2,900      Allowance for Doubtful Accounts $ (1,700) Notes Payable $ 14,000      Inventory (40 units) $ 3,400 Contributed Capital $ 6,600    Retained Earnings – Feb 1, 2012 $ 6,120    • WWC establishes a policy that it will sell inventory at $150 per unit. • In January, WWC received a $5,150 advance for 35 units, as reflected in Unearned...