Asked by Vivian Terziario on Jul 16, 2024
Verified
Which of the following accounts has a normal credit balance?
A) Sales Returns and Allowances
B) Sales Discounts
C) Sales Revenue
D) Selling Expense
Normal Credit Balance
The usual balance side of an account, considered a credit for liability, revenue, and equity accounts.
Sales Discounts
A reduction from the gross or total price of goods or services offered by the seller to the buyer under certain conditions.
- Differentiate among various kinds of accounts (asset, contra asset, revenue, contra revenue) and understand their functions in recording sales transactions.
Verified Answer
SH
Shelton HardyJul 23, 2024
Final Answer :
C
Explanation :
Sales revenue has a normal credit balance because it represents an increase in assets (cash or accounts receivable) resulting from sales transactions, which are credited to the revenue account.
Learning Objectives
- Differentiate among various kinds of accounts (asset, contra asset, revenue, contra revenue) and understand their functions in recording sales transactions.