Multiple Choice
Sales Allowances and Sales Discounts
A) are both designed to encourage customers to pay their accounts promptly.
B) are both contra revenue accounts to Sales.
C) both have a normal credit balance.
D) both have a normal debit balance and are therefore regarded as expense accounts.
Correct Answer:

Verified
Correct Answer:
Verified
Q27: When goods from a cash sale are
Q30: Financial information is presented here for two
Q31: Summarized below are the transactions recorded by
Q33: On July 10, Arbour Inc. purchased $5,000
Q34: Presented below are selected transactions for Manclave
Q35: The time it takes to go from
Q36: On September 1, Wilderness Inc. had an
Q37: Sales Returns and Allowances is a(n)<br>A) asset
Q87: Inventory is usually the largest current asset
Q138: If a quantity discount of 10% is