Which of the following accounts has a normal credit balance?
A)Sales Returns and Allowances
B)Sales Discounts
C)Sales
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

Sales is a revenue account and all revenue accounts have normal credit balances. Sales Returns and Allowances and Sales Discounts are contra-revenue accounts, therefore they have normal debit balances. Cost of Goods Sold is an expense account and all expenses have normal debit balances.

Which of the Following Accounts Has a Normal Credit Balance