The Purchase Returns and Allowances account is classified as
A) an asset account.
B) a contra asset account.
C) an expense account.
D) a contra expense account.

Name: The Purchase Returns and Allowances account is classified as A) an asset account. B) a contra asset account. C) an expense account. D) a contra expense account.
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Question

Quizplus · Accepted Answer

The Purchase Returns and Allowances account is classified as a contra expense account because it reduces the total purchases, which are recorded as expenses.

The Purchase Returns and Allowances Account Is Classified as