Question

One example of a contra-asset is:

A. Sales Discount

B. Sales Returns and Allowances

C. Uncollectible Accounts Expense

D. None of the above are contra assets

The journal entry to record a sales return made by a customerwould include:

A. A debit to Accounts Receivable and a credit to SalesReturns

B. A debit to Cash and Sales Returns

C. A debit to Sales Returns and a credit to AccountsReceivable

D. A debit to Accounts Receivable and a credit to Cash

In times of rising prices, ______ generally result(s) in the______ ending inventory.

A. LIFO and FIFO, same

B. LIFO, higher

C. FIFO, lower

D. LIFO, lower



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