0
No, purchase returns and allowances are not considered a liability. Instead, they are classified as a contra expense account that reduces the total purchases or cost of goods sold on the income statement. This account reflects reductions in inventory and Accounts Payable, impacting the overall financial position of a company but not creating a liability.
What else can I help you with?
Is sales returns and allowance a current liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
Account type of purchase returns and allowances?
debit
Is purchase returns an asset or liability?
purchase return is assets or liability or expense
What type of account is Purchases returns and allowances?
A contra purchase account
What is the journal entry for sales returns and allowances?
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
Is a sales return and allowances a liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
Is sales returns and allowance a current liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
Account type of purchase returns and allowances?
debit
Where do you put Sales Returns and Allowances on a trial balance?
On the trial balance, Sales Returns and Allowances is a liability. If items returned are sold later, they become assets under sales.
Is purchase returns an asset or liability?
purchase return is assets or liability or expense
What type of account is Purchases returns and allowances?
A contra purchase account
What is sales returns and allowances classified as?
An income account. Debit Returns & Allowances, Credit Cash.
What is the journal entry for sales returns and allowances?
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
The Sales Returns and Allowances account is classified as a?
Sales Returns and Allowances are contra revenue accounts because they reduce that total amount of sales. [Sales-Sales returns and allowances=Net sales]. They are reported on the income statement.
How is the net delivered cost of purchases computed?
To calculate the net delivered cost of purchase, one would add purchases and freight in and then deduct purchase returns & allowances and then deduct purchase discounts.
What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
What accounts has a normal debit balance a Merchandise Inventory b Delivery Expense c Sales Returns and Allowances d Sales?
Sales Returns and Allowances
