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Purchase return is a contra account because it reduces the balance in the Purchase account in an attempt to determine cost of goods sold. This is like sales returns and allowances being used to determine net sales on an entity's income statement.
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Purchase Return and Allowances is a contra account and its normal balance would be...?
a debit and credit
What type of account is Purchases returns and allowances?
A contra purchase account
Freight account is a contra purchase account true or false?
True
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
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
Purchase Return and Allowances is a contra account and its normal balance would be.?
a debit and credit
Purchase Return and Allowances is a contra account and its normal balance would be?
a debit and credit
Purchase Return and Allowances is a contra account and its normal balance would be...?
a debit and credit
True or false that purchase return and allowances is contra account and its normal balance would be credit?
true
What type of account is Purchases returns and allowances?
A contra purchase account
Freight account is a contra purchase account true or false?
True
Is a purchase discount account an asset or liability?
It is a contra asset account; thus, an ASSET
What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
What are the examples of capital contra account?
is accumulated depreciation a contra account
Is Purchase Discount revenue or expense?
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
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 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
