5. Purchase Discounts is a contra expense account with a normal credit balance. true or false

6.A purchase return and allowance will reduce the net sales of a business.true or false

7.

The journal entry to record the sale of merchandise on credit for $510 plus 5 percent sales tax will include a debit to Accounts Receivable for

Multiple Choice

• $512.55.

• $515.10.

• $510.00.

• $535.50.