Which Sales Accounts Normally Have a Debit Balance

question 65

Multiple Choice

Which sales accounts normally have a debit balance?

• A) Sales Discounts
• B) Sales Returns and Allowances.
• C) Both Sales Discounts and Sales Returns and Allowances have debit balances.
• D) Neither Sales Discounts or Sales Returns and Allowances have debit balances.

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Definitions:

Direct Payments

Direct payments are sums of money paid directly from one party to another, bypassing any intermediaries.

Marketing Loans

Loans provided to agricultural producers, allowing them to store their product for a later sale when market conditions may be more favorable.

Price Supports

Initiatives, often by governments, to maintain the market price of a commodity or product at a certain level by purchasing excess supply, providing subsidies, or setting minimum prices to benefit producers.

Environmentalists

Individuals or groups who advocate for the protection of the environment and promote awareness of environmental issues and sustainability.