The respective normal account balances of Purchases, Purchase Discounts, and Freight-In are
A) credit, credit, debit.
B) debit, credit, credit.
C) debit, credit, debit.
D) debit, debit, debit.

Question

Quizplus · Accepted Answer

Purchases and Freight-In are both expense accounts and have debit balances, while Purchase Discounts is a contra expense account and has a credit balance. Therefore, the normal balances for Purchases and Freight-In are debit, while the normal balance for Purchase Discounts is credit.

The Respective Normal Account Balances of Purchases, Purchase Discounts, and Freight-In