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 inventory-related accounts, therefore their normal balance is a debit. Purchase Discounts is a contra expense account and has a credit normal balance, as it represents a reduction in expenses.

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