The respective normal account balances of Purchases, Purchase Discounts, and Freightin are
Question
The respective normal account balances of Purchases, Purchase Discounts, and Freightin are
Solution
The normal account balances for these accounts are as follows:
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Purchases: This is a temporary account that is used to record the cost of goods purchased during a specific accounting period. The normal balance for this account is a debit.
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Purchase Discounts: This account is used to record any discounts received from suppliers for prompt payment. The normal balance for this account is a credit.
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Freight-In: This account is used to record the cost of freight for goods purchased. This is considered part of the cost of inventory and is therefore a cost of doing business. The normal balance for this account is a debit.
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