Purchase Returns and Allowances and Purchase Discounts are contra expense accounts with normal credit balances.

Name: Purchase Returns and Allowances and Purchase Discounts are contra expense accounts with normal credit balances.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

Purchase Returns and Allowances and Purchase Discounts are both contra expense accounts, meaning they have normal credit balances. This is because they represent reductions in the cost of goods purchased.

Purchase Returns and Allowances and Purchase Discounts Are Contra Expense