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ID: 2438298 • Letter: #

Question

(B) ??(T) ??(W) ??????? ???? ???? ???? ???,???,??, ??,???,???, ??,????,??/? V????,????? V?????? _??(P) solution+ Q3 On August 5, Toyota buys merchandise on account from AutoZone Company. The selling price of the goods is $2,326, and the cost to AutoZone Company was $536. On August 8, Toyota returns goods with a selling price of $180 and a cost of S25. Which of the following statement is false? A. Journal entry to record the sale on the books of AutoZone Company on August 5 Accounts Receivable 2,326 Sales Revenue 2,326 Cost of Goods Sold 536 Inventory 536 B. Journal entry to record return on the books of AutoZone Company on August 8 Sales Returns and Allowances 180 Accounts Receivable 180 Inventory 25 Cost of Goods Sold 25 C. Sales Returns and Allowances is a contra revenue account and has normal debit balance D. Accumulated depreciation is a contra asset account and has a normal debit balance. 04 Which of the follow ing statement is FALSE:?

Explanation / Answer

Answer: D. Accumulated depreciation is a contra asset account and has a normal debit balance.

Accumulated depreciation is a contra asset account in balance sheet and has a normal credit balance.