Normal Balance For Sales Revenue

Normal balances of merchandise accounts.

Normal balance for sales revenue. Revenue does not necessarily mean cash received. Revenue is normally a credit balance so a contra revenue account such as sales returns is normally a debit balance. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts it is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority. Accounts with balances that are the opposite of the normal balance are called contra accounts.

Sales revenue is the income received by a company from its sales of goods or the provision of services. The exceptions to this rule are the accounts sales returns sales allowances and sales discounts these accounts have debit balances because they are reductions to sales. C credit debit debit d credit debit credit 17 when the phiysical count of barr company inventory had a cost of 4 380 at year end and the unadjusted balance in inventory was 4 600 barr will have to make the following entry a. An asset is normally a debit balance so a contra asset account such as accumulated depreciation is normally a credit balance.

In accounting the terms sales and revenue can be and often are used interchangeably to mean the same thing. Respective normal account balances of sales revenue sales returns and allowances and sales discounts are credit credit credit b debit credit debit. Contra asset normal balance. Contra revenue normal balance.

A cost of merchandise sold b customer refunds payable c delivery expense d estimated returns inventory e merchandise inventory f sales g sales tax payable.