Author Question: Sales returns and allowances and Sales discounts are ________. A) contra-asset accounts and are ... (Read 109 times)

craiczarry · **on:** Jul 5, 2018

Sales returns and allowances and Sales discounts are ________.

A) contra-asset accounts and are netted against Accounts receivable on the balance sheet
B) contra-expense accounts and netted against Cost of goods sold on the income statement
C) expense accounts and added to Sales on the income statement
D) contra-revenue accounts and netted against Sales on the income statement

Question 2

Assuming that the company uses the perpetual inventory system, determine the Gross Profit for the month of Mayusing the LIFO cost method.
a. 348
b. 452
c. 444
d. 356