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Purchase Return and Allowances is a contra account and its normal balance would be?
Wiki User
∙ 10y ago
a debit and credit
Wiki User
∙ 10y ago
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What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
Do banks take money out of your account to cover bank fees?
Yes. The bank has the rights to deduct any fees or transaction charges from the cash balance you have in your account in return for the services availed by you. For Ex: If I do a NEFT funds transfer from my HDFC account to my ICICI Account, HDFC charges me Rs. 5/- as fee for that and deducts it from my account a day or two after I do the NEFT transaction.
Is a mortgage same as overdraft?
No. Overdraft is a facility wherein a customer can withdraw money from his account even if he does not have sufficient balance to cover for it. He would have to eventually return the money to the bank but still he can take cash for his requirements anytime he wants. Mortgage is a facility wherein a customer borrows money from a bank to purchase a home. The only similarity between overdraft and mortgage is the fact that you will be paying an interest to the bank in return for the cash you borrowed from them.
Why do you get charged a fee when you go in the negative on a bank account?
That is because the bank expects or rather needs you to maintain a certain minimum balance for them to be at a situation where it not a loss for them to maintain an account for you. Maintaining a bank account for a customer requires certain resources and the bank provides us in return for our commitment that we shall maintain the minimum balance requirements. If we fail to do so, it becomes unfeasible for the bank to provide the facility and hence they charge us a penalty when you go below the minimum balance requirement or '0' for worse case scenarios.
If your car gets repossessed and you choose not to pay for it can they take your tax return?
If the lender has placed a judgment against you for the deficit balance (balance left after the car is auctioned/sold), then yes in most states, they can take the tax return and apply it to the balance owing.
Purchase Return and Allowances is a contra account and its normal balance would be.?
a debit and credit
Purchase Return and Allowances is a contra account and its normal balance would be...?
a debit and credit
True or false that purchase return and allowances is contra account and its normal balance would be credit?
true
What is the balance for purchase return and allowances?
CREDIT
Is purchase return is contra account?
Purchase return is a contra account because it reduces the balance in the Purchase account in an attempt to determine cost of goods sold. This is like sales returns and allowances being used to determine net sales on an entity's income statement.
What kind of an account are sales return and allowances?
Sales Returns and Allowances is a contra income account.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
What are the net sales of a company that has the following account balance sales 563400 sales returns and allowances 18690 cost of goods sold 371560 operating expenses 123520?
Sales 563400less:sales return 18690Net Sales 544710
A sales return for credit on account would be recorded in what type of journal?
General Journal Sales Returns and Allowances - A company with sales returns and allowances can record them in the General Journal.
What is the normal balance of a capital account?
Capital account has credit balance as a normal balance of account as it is the amount company requires to return back to it's owner at the time of liquidation.
What is the journal entry for goods return?
If sales goods returned: [Debit] Sales account xxxx [Credit] Sales Return account xxxx if purchase goods returned: [Debit] Purchase return xxxx [Credit] Purchases account xxxx
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
