Question

In: Accounting

Which of the following is correct?

Which of the following is correct?

Group of answer choices

Purchases Discounts is a contra cost account and carries a credit balance.

Purchases Discounts is an expense account and carries a debit balance.

Purchases Discounts is an asset account and carries a credit balance.

Purchases Discounts is an expense account and carries a credit balance.

Solutions

Expert Solution

Option A is the answer

Both purchase discount and purchase return and allowance accounts are contra accounts to purchases account and carry the credit balances.

ekkarill92 answered 2 years ago
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