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Which of the following accounts has a normal credit balance?

(A) Sales Returns and Allowances
(B) Sales
(C) Merchandise Inventory
(D) Transportation Out
(E) Sales Discounts

1 Answer

1 vote

Final answer:

The account with a normal credit balance from the options provided is (B) Sales, as revenue accounts typically have a normal credit balance.

Step-by-step explanation:

The question at hand is which of the following accounts has a normal credit balance. The answer is (B) Sales. In accounting, different types of accounts have either a normal debit or credit balance. Revenue accounts, such as Sales, have a normal credit balance, which means that credits will increase the balance of the account and debits will decrease it. Other accounts like Sales Returns and Allowances, Merchandise Inventory, Transportation Out, and Sales Discounts are typically expected to have debit balances, except for Sales Discounts which can also have a normal credit balance but is more of a contra-revenue account that offsets the Sales account.

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User Hgdeoro
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