Question

Which of the following accounts has a normal credit balance?

O Accounts Receivable
O Sales
O Merchandise Inventory
O Delivery Expense

Generally, the revenue account for a merchandising business is entitled
O sales
O Fee Earned
O Gross Sales
O Gross Profit

Answer 1

Q1) Sales is the account that has a normal credit balance.

Q2) Generally, the revenue account for a merchandising business is entitled "Sales".

Step-by-step explanation:

Q1) Sales is a revenue account, and the normal balance for a revenue account is a credit balance.

Q2) This account is used to record the sales of goods or merchandise to customers. The sales account is credited when goods are sold and debited when returns or allowances are made.

1. "Fee Earned" is also a possible name for a revenue account, as it is used to record fees earned for services rendered. This account would be credited when fees are earned and debited when fees are refunded or unearned.
2. "Gross Sales" is a term that refers to the total amount of sales made by a business before any deductions are made. This term is often used to describe the total sales of a business for a specific period of time, such as a month or a year. Gross sales do not take into account any returns, allowances, or discounts that may be given to customers.
3. "Gross Profit" is a term that refers to the difference between the cost of goods sold and the selling price of those goods. It is calculated by subtracting the cost of goods sold from the net sales of a business. Gross profit is not a revenue account and is not used to record the sales of goods or merchandise to customers.

I hope this helps to clarify the difference between these terms. Please let me know if you have any other questions.