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What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
The Sales Returns and Allowances account is classified as a?
Sales Returns and Allowances are contra revenue accounts because they reduce that total amount of sales. [Sales-Sales returns and allowances=Net sales]. They are reported on the income statement.
How do you mark out lengths to be cut taking into account any allowances?
By measuring with a tape and marking with a pencil or marker.
What are accrued expenses reported on the balance sheet as?
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
Does sales return and allowances go on the statement of earnings?
--> another term for Statement of Earnings is Income Statement --> in income statement, you deduct the Sales Return & Allowances from the Gross Sales to come up with Net Sales --> in presentation purposes, usually it is only the Net Sales account that is shown
What account do you credit when you debit operating expenses?
DR Operational Expenses CR Accounts Payable
What account do you debit when you credit operating expenses?
DR Operational Expenses CR Accounts Payable
What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
How do you create a Journal Accounting entry for Operating expenses paid in cash 4600 and on account 2000?
Operating Expenses (Debit) 6,600 Cash (Credit) 4,600 Accounts Payable (Credit) 2,000
How to account for expenses in a business financial statement?
To account for expenses in a business financial statement, you record all the money spent on operating activities, such as salaries, rent, utilities, and supplies. These expenses are subtracted from the revenue to calculate the net income or profit of the business.
What is sales returns and allowances classified as?
An income account. Debit Returns & Allowances, Credit Cash.
What type of account is Purchases returns and allowances?
A contra purchase account
The proceeds of the Georgia state lottery after prizes and operating expenses is held in a separate account which can only be used for education programs and purposes in the state?
Lottery for Education Account
Does sales returns and allowances have a normal debit balance?
That is correct. Sales and returns allowances is what is called a "Contra" account because it exists to reduce the net balance of an account. Sales is a credit account, so you debit sales returns and allowances in order to reduce your net sales.
Account type of purchase returns and allowances?
debit
What is the allowances doubtful account receivable?
accounts payable
Advantages and disadvantages of trading profit and loss account?
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
