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(b) A merchandiser frequently has a need to use contra accounts related to the sale of goods: i. Classify the contra accounts that have normal
(b) A merchandiser frequently has a need to use contra accounts related to the sale of goods:
i. Classify the contra accounts that have normal debit balances. (1 marks) ii. Illustrate why they are not considered expenses. (1 marks)
Amount in RM ASHRIL COMPANY Multiple Step Income Statement For the Year Ended December 31, 2020 Amount in RM Net Sales 2100000.00 Less: Cost of Goods Sold -670000.00 Gross Profit 1430000.00 Less: Operating Expenses -55000.00 Operating Income Add: Non Operating Incomes and Gain: Dividend Revenue 1375000.00 60000.00 1435000.00 Less: Non Operating Expenses and Losses: Interest Expense Casualty loss from vandalism Total Non Operating Expenses and Losses Net Income (Loss) 25000.00 95000.00 -120000.00 1315000.00Step by Step Solution
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