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Does cost of goods sold account have a debit balance or a credit balance?
Wiki User
∙ 13y ago
Expense accounts should always be debit balances.
The only exception is when you are recording discounts received on purchases in a separate account than the COGS account used for purchases. Discounts should be shown as a COGS account so that it is netted against purchases, and will have a credit balance. But even in this case, the total of all COGS accounts should be a debit balance.
Wiki User
∙ 13y ago
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What type of balance is the finished goods account have a debit or credit?
credit bal
Why is salaries payable a natural debit balance?
cost of goods sold has a natural debit or credit balance
How do you account for goods received and invoice received?
Goods Received: Debit Stock Credit Goods Received Invoice Received: Debit Goods Received Credit Trade Payables Result: Debit Stock (Asset) Credit Trade Payables (Liability)
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
What is the journl entry for puchasing goods on account?
[Debit] Purchases [Credit] Accounts payable
What type of balance is the finished goods account have a debit or credit?
credit bal
Why is salaries payable a natural debit balance?
cost of goods sold has a natural debit or credit balance
Returned damaged goods to supplier- what debit and credit account?
When you have returned damaged goods then you will need to credit accounts receivable and debit accounts payable. This will decrease your revenue for the account.
How do you account for goods received and invoice received?
Goods Received: Debit Stock Credit Goods Received Invoice Received: Debit Goods Received Credit Trade Payables Result: Debit Stock (Asset) Credit Trade Payables (Liability)
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
In accounting what is the rule for entering in the ledger?
Debit an account that has received goods or money; and credit account that has given goods
What is the journl entry for puchasing goods on account?
[Debit] Purchases [Credit] Accounts payable
Does cost of goods sold have a natural debit or credit balance?
A natural debit because its an expense which are always debits.
What are credit and debit balances in accounting?
A credit balance shows up on a vendor statement when you have returned defective goods, for example. You can call the vendor and request a check for that amount or apply it to any outstanding balance that you owe that vendor. Do you mean "debit memo" instead of debit balance? A debit memo is sent to a vendor to let it know that you are making a deduction from what you owe to cover defective goods, a short shipment, a price reduction, or some other matter. When the vendor receives the debit memo and agrees with your reduction, it will send you a credit memo. And then, you may have a credit balance on your account- depending on whether or not you owe them any money.
Is a barclaycard a debit card?
No - it's a CREDIT card - you use it to pay for goods - then either pay it off in full when you get your statement or pay the minimum balance stated. With a DEBIT card - you can only pay for goods IF you have sufficient funds in your bank account at the time of purchase.
What is the journal entrie for purchase on account?
[Debit] Goods purchased [Credit] Accounts payable
What is the journal entry for destroyed goods if it is not mentioned that loss is by fire or theft?
[Debit] Goods lost [Credit] Inventory account
