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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


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.?

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True or false that purchase return and allowances is contra account and its normal balance would be credit?

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Freight account is a contra purchase account true or false?

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What type of account is Purchases returns and allowances?

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Is a purchase discount account an asset or liability?

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What kind of an account are sales return and allowances?

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What are the examples of capital contra account?

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Is Purchase Discount revenue or expense?

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When a seller records a return of goods the account that is credited is?

When a seller records a return of goods, the account that is credited is typically "Sales Returns and Allowances." This account is a contra-revenue account that reduces the total sales revenue reported on the income statement. Additionally, the inventory account may be debited to reflect the return of goods to stock.


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