An account that is classified as a contra-revenue: O a. may include sales discounts and credit card service fees. O b. is subtracted from gross sales revenue to determine net sales revenue. O c. typically has a credit balance. O d. is subtracted from accounts receivable to determine net receivables.

An account that is classified as a contra-revenue: O a. may include sales discounts and credit card service fees. O b. is subtracted from gross sales revenue to determine net sales revenue. O c. typically has a credit balance. O d. is subtracted from accounts receivable to determine net receivables.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1MC: Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory...

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18. If a company employs the net method of recording accounts receivable from customers, then sales discounts taken should be reported as O a. a deduction from sales in the income statement. O b. an item of "other income and expense" in the income statement. O c. a deduction from accounts receivable in determining the net realizable value of accounts receivable. O d. should not be used.
Which of the following groupings of accounts includes only accounts that carry a normal credit balance? a.Customer Refunds Payable, Estimated Returns Inventory, and Sales b.Sales Tax Payable, Cost of Goods Sold, and Sales c.Inventory, Delivery Expense, and Sales d.Sales Tax Payable, Customer Refunds Payable, and Sale
True or False 1. Sales returns and allowances is a contra-revenue account 2. Sales discount is a revenue account with a credit balance
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