Question Details

All of the following are contra revenue accounts except 


1. Which of the following accounts has a normal credit balance?
a. Sales Returns and Allowances
b. Sales Discounts
c. Sales
d. Selling Expense
2. With respect to the income statement,
a. contra-revenue accounts do not appear on the income statement.
b. sales discounts increase the amount of sales.
c. contra-revenue accounts increase the amount of operating expenses.
d. sales discounts are included in the calculation of gross profit.
3. When a seller grants credit for returned goods, the account that is credited is
a. Sales.
b. Sales Returns and Allowances.
c. Merchandise Inventory.
d. Accounts Receivable.
4. The respective normal account balances of Sales, Sales Returns and Allowances, and
Sales Discounts are
a. credit, credit, credit.
b. debit, credit, debit.
c. credit, debit, debit.
d. credit, debit, credit.
5. All of the following are contra revenue accounts except 
a. sales.
b. sales allowances.
c. sales discounts.
d. sales returns.




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