The respective normal account balances of Sales, Refund Liability, and Estimated Inventory Returns are
A)credit, credit, credit.
B)debit, credit, debit.
C)credit, credit, debit.
D)credit, debit, credit.

Question

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Sales accounts typically have a credit balance as they increase with credit entries when sales are made. Refund Liability accounts also have a credit balance as they represent an obligation to return funds to customers. Estimated Inventory Returns accounts have a debit balance as they represent an asset or an expense to the company, increasing with returns.

The Respective Normal Account Balances of Sales, Refund Liability, and Estimated