1 Question 3 2 3 Classify the accounts and indicate their normal balance. 4 Use the following abbreviations: CA, LTI, PPE, CL, LTL, EQ, REV, EXP 5 NORMAL ACCOUNT BALANCE (Debit or Credit) Cost of Goods Sold Equipment Purchase Returns & Allowances Sales Tax Payable Sales Returns & Allowances Freight-Out Prepaid Insurance Inventory Accounts Receivable Depreciation Expense Purchase Discounts Accumulated Depreciation Sales Discounts Current Asset =CA Long-term Investments = LTI Property, Plant & Equipment = PPE Current Liability =CL Long-term Liability = LTL Equity =EQ Revenue = REV Expense = EXP

1 Question 3 2 3 Classify the accounts and indicate their normal balance. Use the following abbreviations: CA, LTI, PPE, CL, LTL, EQ, REV, EXP 5 \begin{tabular}{|c|c|c|c|} \hline 6 & & \begin{tabular}{c} ACCOUNT \\ CLASSIFICATION \\ \end{tabular} & \begin{tabular}{c} NORMAL \\ BALANCE \\ (Debit or \\ Credit) \end{tabular} \\ \hline 7 & Cost of Goods Sold & & \\ \hline 8 & Equipment & & \\ \hline 9 & Purchase Returns \& Allowances & & \\ \hline 10 & Sales Tax Payable & & \\ \hline 11 & Sales Returns \& Allowances & & \\ \hline 12 & Freight-Out & & \\ \hline 13 & Prepaid Insurance & & \\ \hline 14 & Inventory & & \\ \hline 15 & Accounts Receivable & & \\ \hline 16 & Depreciation Expense & & \\ \hline 17 & Purchase Discounts & & \\ \hline 18 & Accumulated Depreciation & & \\ \hline 19 & Sales Discounts & & \\ \hline \end{tabular} Current Asset = CA Long-term Investments = LTI Property, Plant \& Equipment = PPE Current Liability =CL Long-term Liability = LTL Equity =EQ Revenue = REV Expense = EXP 1 Question 3 2 3 Classify the accounts and indicate their normal balance. Use the following abbreviations: CA, LTI, PPE, CL, LTL, EQ, REV, EXP 5 \begin{tabular}{|c|c|c|c|} \hline 6 & & \begin{tabular}{c} ACCOUNT \\ CLASSIFICATION \\ \end{tabular} & \begin{tabular}{c} NORMAL \\ BALANCE \\ (Debit or \\ Credit) \end{tabular} \\ \hline 7 & Cost of Goods Sold & & \\ \hline 8 & Equipment & & \\ \hline 9 & Purchase Returns \& Allowances & & \\ \hline 10 & Sales Tax Payable & & \\ \hline 11 & Sales Returns \& Allowances & & \\ \hline 12 & Freight-Out & & \\ \hline 13 & Prepaid Insurance & & \\ \hline 14 & Inventory & & \\ \hline 15 & Accounts Receivable & & \\ \hline 16 & Depreciation Expense & & \\ \hline 17 & Purchase Discounts & & \\ \hline 18 & Accumulated Depreciation & & \\ \hline 19 & Sales Discounts & & \\ \hline \end{tabular} Current Asset = CA Long-term Investments = LTI Property, Plant \& Equipment = PPE Current Liability =CL Long-term Liability = LTL Equity =EQ Revenue = REV Expense = EXP