Chart of Account
Increase/Decrease
(Debit or Credit)
100
Goods bought for resale are called Merchandise. The name in the Chart of Accounts for this:
What is Merchandise Inventory Account?
100
Sales Increase on this side.
What is Credit?
200
What type of Account is the Sales Account?
What is Revenue?
200
Purchase Returns and Allowances Increase on this side
What is Credit?
300
Sales Returns & Allowances is this type of Account.
What is a contra account?
300
Paying State Sales Taxes collected.
What is Debit Sales Tax Payable?
400
Type of Account - Sales tax payable.
What is a Liability Account?
400
An allowance given to a Merchandising Company for returned Merchandise to Supplier
What is Credit (Purchase Returns & Allowances)
500
Transportation In
What is an Expense Account?
500
Purchase of PrePaid insurance
What is Debit?
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