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Connect Chapter 7 Homework Accounting Form

Connect Chapter 7 Homework Accounting Form

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all right guys let's take a look at your chapter seven homework this is going to be problem number one we're looking looking at merchandising company and how you account for sales and so on this problem they want us to identify uh we're gonna have some new accounts and also to identify the normal balance and just remember from your rules of debits and credits the normal balance is always said to be the increased side so let's kind of go through these one by one we've got accounts receivable notice that's an asset so should have a debit balance sales tax payable is a liability so therefore it's a credit balance sales that's going to be a new account that's a revenue account so that'll have a credit balance sales returns and allowances that's a debit balance you're going to find that they're going to call that notice it says it's a contra revenue so forgot to mention over here at the side you also have to list the type of an account so what a contour revenue does is it essentially reduce

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