Question

Accounts with a normal credit balance include: (select all that apply)

Answer 1

Answer:

C). Bad Debt Expense

E). Sales Revenue

Explanation:

As per the question, the accounts that are kept with a normal credit balance includes 'bad debt expense' and 'sales revenue account.' Bad debt account is characterized as the account made for noting the expenses incurred in a business due to incollectibility of debts from the debtors or customers who were sold the goods or money on credit and are unable to pay the amount. While sales revenue account is made for the revenue generated by the company from either provision of services or sale of goods. It includes both the cash and a part of it is also held for sales revenue remunerated on credit. Thus, options C and E are the correct answers.