The accounts listed below might appear in the records of a retail store. Their use is never required, but accounts such as these are often a convenience. From the name of the account and your understanding of the accounting for purchases and sales, indicate

(1) Whether the account is a permanent account (to appear as such on the balance sheet) or a temporary account (to be closed at the end of the accounting period).

(2) The normal balance, debit or credit, in the account. If the account is a temporary one, then give the normal balance prior to closing.

(3) If the account is a temporary one, the kind of account it is closed to-balance sheet asset, balance sheet liability, balance sheet owners' equity through a revenue account, or balance sheet owners' equity through an expense (or revenue contra) account.

a Merchandise Purchases.

b Merchandise Purchase Allowances.

c Merchandise Purchase Returns.

d Purchase Returns.

e Sales Tax on Purchases.

f Freight-in on Purchases.

g Sales Allowances.
h Allowance for Sales Discounts.
i Federal Excise Taxes Payable on Sales.
The next two items should not be attempted until Problem 11 has been read.
j Purchase Discounts.
k Purchase Discounts Taken.
I Purchase Discounts Lost.