A characteristic of Purchases Returns and Allowances is:
A) it has a normal credit balance.
B) it increases when merchandise is returned.
C) it decreases cost.
D) All of the above are correct.
Correct Answer:
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Q14: A debit memorandum increases which account on
Q15: When merchandise is bought for resale,which of
Q16: A cost account is treated the same
Q17: A debit memorandum decreases which account on
Q18: Net purchases are:
A)Purchases + Purchases Returns and
Q20: Purchases is a(n):
A)cost.
B)asset.
C)liability.
D)contra-asset.
Q21: Purchases Returns and Allowances:
A)decrease net income.
B)increase net
Q22: The freight paid on goods purchased F.O.B.Shipping
Q23: A purchase discount correctly taken was debited
Q24: The entry to record a purchase of
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