Sales Returns and Allowances and Sales Discounts Are Both ______________

question 148

Short Answer

Sales Returns and Allowances and Sales Discounts are both ______________ accounts and have _______________ normal balances.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Par Common Stock

The nominal or face value of common stock as stated in the corporate charter.

Fair Market Price

The price at which an asset would trade in a competitive auction setting, reflecting the true value under current market conditions.

Par Preferred Stock

Preferred stock issued at its nominal or face value, often with specified dividends, which has priority over common stock in dividend payments and upon liquidation.