For Each of the Following Accounts,state Type of Account and the Normal

question 4

Essay

For each of the following accounts,state type of account and the normal account balance.Assume a periodic inventory system.
$$\begin{array} { | l | l | l | } \hline \text { Account Title } & \text { Type of Account } & \text { Normal Account Balance } \\\hline \text { Purchase Returns and } & & \\\text { Allowances } & & \\\hline \text { Merchandise Inventory } & & \\\hline \text { Purchases } & & \\\hline\end{array}$$

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Definitions:

Sale of Real Estate

The process of transferring ownership of property from one party to another, involving legal documentation and financial transactions.

Insurance Company's Agent

An insurance company's agent is an individual authorized to sell and manage insurance policies on behalf of an insurance company.

Coinsurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the costs of a claim, encouraging insured parties to avoid excessive claims.

Replacement Value

The cost to replace an asset or property at its current value, without deduction for depreciation, at the time of loss.