Question

The sales accounts that normally have a debit balance are:

(a) Sales Discounts.
(b) Sales Returns and Allowances.
(c) Both (a) and (b).
(d) Neither (a) nor (b).

Answer 1

Sales Discounts and Sales Returns and Allowances are the sales accounts that normally have a debit balance. Option c.

Step-by-step explanation:

The sales accounts that normally have a debit balance are (c) both (a) and (b), which are Sales Discounts and Sales Returns and Allowances.

Sales Discounts are reductions in the selling price offered to customers as an incentive for early payment. These discounts are recorded as a reduction in the sales revenue, leading to a debit balance in the sales discounts account.

Sales Returns and Allowances are merchandise returned by customers, or allowances granted to customers due to damaged or defective items. These returns and allowances result in a reduction in sales revenue, which also leads to a debit balance in the sales returns and allowances account.

So option c.