Asked by Andrea Cannon on Apr 25, 2024
Verified
Which of the following accounts carry a normal debit balance?
A) Sales Tax Payable, Inventory, Delivery Expense, and Customer Refunds Payable
B) Inventory, Delivery Expense, Cost of Goods Sold, and Estimated Returns Inventory
C) Inventory, Cost of Goods Sold, Customer Refunds Payable, and Sales
D) Delivery Expense, Customer Refunds Payable, Estimated Return Inventory, and Sales
Normal Debit Balance
The expected positive balance in certain accounts of the accounting ledger, such as assets, expenses, and losses.
Sales Tax Payable
A liability account recorded on the balance sheet that represents the amount of sales tax collected from customers and owed to the government.
Estimated Returns Inventory
The provision of goods that are expected to be returned by customers, considered in inventory and financial accounting.
- Apply knowledge of accounts with normal debit or credit balances and analyze their impacts on financial statements.
Verified Answer
PW
Phumiphat Wongsinghakul7 days ago
Final Answer :
B
Explanation :
Accounts that carry a normal debit balance include assets (like Inventory), expenses (like Delivery Expense and Cost of Goods Sold), and contra-revenue accounts (like Estimated Returns Inventory). These increase with a debit and decrease with a credit.
Learning Objectives
- Apply knowledge of accounts with normal debit or credit balances and analyze their impacts on financial statements.