Final answer:
The correct answer to the question is C) Sales Discount, which is a contra revenue account that typically withstands a debit balance. It is used to reduce total revenue as opposed to accumulated depreciation, which is a contra asset account, or the expense accounts for Deprecation Expense and COGS.
Step-by-step explanation:
Sales Discount is a contra revenue account that typically carries a debit balance. It represents the discounts a company provides to its customers for early payments or other reasons, reducing the total revenue received. Since revenue accounts normally have a credit balance, the sales discount contra account decreases this revenue with a debit balance.
On the other hand, Accumulated Depreciation is a contra asset account that has a credit balance. It is used to offset the asset account for the depreciation of the assets over time. Depreciation Expense represents the expense recorded each accounting period for the use of fixed assets and has a debit balance, but it is not a contra account. Lastly, Cost of Goods Sold (COGS) is an expense account with a debit balance that represents the direct costs associated with the production of goods sold by a company.