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Accounting ch 14
College Accounting Ch 14
Question | Answer |
---|---|
Contra-Cost Accounts | Accounts that are deducted from the purchases account when computing cost of goods sold - Purchases Returns and Allowances, and Purchase Discounts. |
Contra-Revenue Accounts | Accounts that are deducted from Sales on the income statement - Sales Returns and Allowances, and Sales Discounts. |
Inventory Short and Over | An account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records. |
Unearned Revenue | Cash received in advance of. Delivering a product or performing a service. |