Purchases returns and allowances and Purchases discounts are classified as _________ accounts on the income statement.
A) expense
B) revenue
C) contra-expense
D) contra-revenue

Question

Quizplus · Accepted Answer

Purchases returns and allowances and Purchases discounts are classified as contra-expense accounts because they reduce the total cost of purchases, which are initially recorded as expenses.

Purchases Returns and Allowances and Purchases Discounts Are Classified as _________