The Revenue Account Sales Has A Normal Credit Balance

The source document for cash received on account from the customer is a receipt.

The revenue account sales has a normal credit balance. Sales discounts is a contra revenue account with a normal debit balance. When cash is received on account the cash account balance increases and the accounts receivable account balance increases. Hence contra revenue accounts will have debit balances. 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.

Respective normal account balances of sales revenue sales returns and allowances and sales discounts are credit credit credit b debit credit debit. 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. The revenue account sales has a normal credit balance. Each of the accounts in a trial balance extracted from the bookkeeping ledgers will either show a debit or a credit balance.

The normal balance of any account is the balance debit or credit which you would expect the account have and is governed by the accounting equation. Accounts with balances that are the opposite of the normal balance are called contra accounts. Sales is a revenue account with a normal credit balance. The liability account sales tax payable has a normal credit balance.