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Discount on Notes Payable is a contra account to Notes Payable on the balance sheet?
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∙ 12y ago
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∙ 12y ago
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What is a normal balance account of a Sales discount?
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
What type of account is a sales discount?
A sales discount account is a contra-revenue account.
Is a contra account balance a debit or credit?
A contra account balance is a debit balance account. It is a general ledger account that has a balance that is an exact opposite of a normal balance. Contra accounts are generally used to report the gross and the net amount of an organization.
What is the normal balance on a sales discount account?
it is a contra -revenue account (to sales), so, that means it has a debit (dr) balance. I know because I am swagly and because that is what my accounting book told me. /swag
What is contra account?
A contra-account is a sub-account or a related account that normally has the opposite balance, thereby reducing the balance of the main account. For example, Reserve for Bad Debts is a contra-account to Accounts Receivable. A/R normally has a debit balance while the reserve normally has a credit balance.
What is a normal balance account of a Sales discount?
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
What is the definition of offset accounting?
One that reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. Discount on note payable, which is a reduction of notes payable to derive the carrying value, is another example.
What type of account is a sales discount?
A sales discount account is a contra-revenue account.
Is a contra account balance a debit or credit?
A contra account balance is a debit balance account. It is a general ledger account that has a balance that is an exact opposite of a normal balance. Contra accounts are generally used to report the gross and the net amount of an organization.
Is drawings account is a contra account?
Drawings account is a contra account because it reduces the owner's equity account's normal balance, a credit balance.
What is contra account?
A contra-account is a sub-account or a related account that normally has the opposite balance, thereby reducing the balance of the main account. For example, Reserve for Bad Debts is a contra-account to Accounts Receivable. A/R normally has a debit balance while the reserve normally has a credit balance.
What is the normal balance on a sales discount account?
it is a contra -revenue account (to sales), so, that means it has a debit (dr) balance. I know because I am swagly and because that is what my accounting book told me. /swag
The difference between an asset account and its contra account balance is called?
net balance
The type of account and normal balance of accumulated depreciation is?
contra asset account, credit balance
What is the normal balance of drawing?
Drawings is a contra account. Debit is the normal balance of Drawing account.
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
Is a contra account a debit or credit account?
That depends, it could be either. a contra-asset account would be just the opposite of an asset. All assets have a debit balance (increase with debit) therefore a contra-asset account would be a credit. The same holds true with a contra-liability account, it is just the opposite, a liability maintains a credit balance (increases with a credit) therefore a contra-liability account would be a debit.
