Asked by Isabelle Manaytay on Jun 12, 2024
Verified
Which of the following accounts carry a normal credit balance?
A) Sales Tax Payable, Cost of Goods Sold, and Sales
B) Inventory, Delivery Expense, and Sales
C) Customer Refunds Payable, Estimated Returns Inventory, and Sales
D) Sales Tax Payable, Customer Refunds Payable, and Sale
Normal Credit Balance
The expected positive balance of certain types of accounts in the double-entry bookkeeping system, such as liabilities, revenues, and equity accounts.
Sales Tax Payable
A liability account in the general ledger that accumulates the amount of sales tax collected from customers on behalf of local or state tax authorities, to be remitted in the future.
Estimated Returns Inventory
A reserve account used by companies to account for anticipated returns of sold goods, affecting the overall sales and inventory levels.
- Utilize understanding of accounts that typically have debit or credit balances and examine how they affect financial reports.
Verified Answer
AN
Angelique Naholowa'a-HopkinsJun 13, 2024
Final Answer :
D
Explanation :
Sales Tax Payable and Customer Refunds Payable both represent liabilities, which have a normal credit balance. Sales is a revenue account and has a normal debit balance.
Learning Objectives
- Utilize understanding of accounts that typically have debit or credit balances and examine how they affect financial reports.