The Respective Normal Account Balances of Purchases, Purchase Discounts, and Freight-In

question 163

Multiple Choice

The respective normal account balances of Purchases, Purchase Discounts, and Freight-In are

• A) credit, credit, debit.
• B) debit, credit, credit.
• C) debit, credit, debit.
• D) debit, debit, debit.

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Definitions:

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Discount Date

The specified date when a payment is to be made earlier than the due date at a reduced amount, as a motivation for early payment.

Due Date

The specific date by which a task, payment, or assignment is to be completed or submitted.

Remittance

The process of sending money in payment or as a gift.