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    2 Column Normal Balance

    Uploaded by

    Shawn Mendez
    This document outlines the normal balances of various accounts used for accounting purposes. Key accounts include Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Merchandise Inventory beginning and ending balances, and various expense accounts like Salaries Expense, Rental Expense, and Utility Expense. The document provides a brief description of the nature and purpose of each account.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    2 Column Normal Balance

    Uploaded by

    Shawn Mendez
    81 views2 pages
    This document outlines the normal balances of various accounts used for accounting purposes. Key accounts include Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Merchandise Inventory beginning and ending balances, and various expense accounts like Salaries Expense, Rental Expense, and Utility Expense. The document provides a brief description of the nature and purpose of each account.

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    Accounting

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    2 column normal balance

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    This document outlines the normal balances of various accounts used for accounting purposes. Key accounts include Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Merchandise Inventory beginning and ending balances, and various expense accounts like Salaries Expense, Rental Expense, and Utility Expense. The document provides a brief description of the nature and purpose of each account.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    81 views2 pages

    2 Column Normal Balance

    Uploaded by

    Shawn Mendez
    This document outlines the normal balances of various accounts used for accounting purposes. Key accounts include Sales, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Merchandise Inventory beginning and ending balances, and various expense accounts like Salaries Expense, Rental Expense, and Utility Expense. The document provides a brief description of the nature and purpose of each account.

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    © All Rights Reserved
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    Normal Balances 

    Account   Debit   Credit  Nature of the Account

    Sales   600,000   Refers to the revenues earned when a company sells its goods, products,
    merchandise, etc. 

    Sales Returns and Allowances 25,000      As the name would suggest, this pertains to the contra revenue account to record
    return of goods, products, merchandise, etc.   This will reduce the total sales amount
    to get the net sales.

    Sales Discounts 10,800     A contra revenue account that reports the discounts allowed by the seller if the
    customer pays the amount owed within a specified time period or a large quantity of
    items.

    Purchases 352,000     The purchases account is a general ledger account in which is recorded the inventory
    purchases of a business. This account is used to calculate the amount of inventory
    available for sale in a periodic inventory system.

    Purchase Returns and   10,900  A contra purchases account which pertains to the transactions involving the return of
    Allowances purchased goods. 

    Supplies Expense 5,200    Refers to the cost of supplies and other consumables used during the specified
    period.

    Salaries Expense 22,000    Refer to the payment given to employees in exchange for their service. 

    Merchandise Inventory, Beg             Refers to the beginning balance of the Inventories for sale, these are assumed to be
    190,100   sold already and will be used to calculate the amount of inventory available for sale in
    a periodic inventory system.

    Merchandise Inventory, End   185,000   Refers to the ending balance of the Inventories for sale, This will be used to calculate
    the amount of Cost of Goods sold (deducted to Inventory available for sale) in a
    periodic inventory system.

    Purchase Discounts   3,800   A contra purchase account that is a reduction in the price of a good if the buyer pays
    for it within the allowable period. Also called cash discount

    Freight-in 8,000    Freight in is the transportation cost incurred upon the delivery of goods from a
    supplier to JEON JUNG KOOK. For accounting purposes, the Company adds this
    cost to the cost of the received goods.
    Rental Expense 7,000    Rent expense refers to the total cost of using rental property for each reporting period.

    Delivery Expense 4,100    Delivery expense stores all freight out expenses incurred by JEON JUNG KOOK.
    Expenses that may be stored within this account include the costs of fuel and fees
    paid to third-party transport services.

    Utility Expense 13,000    Utilities expense is the cost incurred by using utilities such as electricity, water, waste
    disposal,

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