Classification

Question 1

Purchases (2101)

Answer 1

Purchases is a Cost of Sales (Expense) account.

Question 2

Purchases Returns and Allowances (2101A)

Answer 2

Purchases Returns and Allowances is a Contra Expense account.

Question 3

Cartage on Purchases (2102)

Answer 3

Cartage on Purchases is a Cost of Sales Expense.

Question 4

Customs Duty (2103)

Answer 4

Customs Duty is a Cost of Sales Expense.

Question 5

Packaging Expenses (2104)

Answer 5

Packaging Expenses is a Cost of Sales Expense.

Question 6

Cost of Goods Sold (2105)

Answer 6

Cost of Goods Sold is a Cost of Sales Expense.

Question 7

Inventory Adjustment (2106)

Answer 7

Inventory Adjustment is a Cost of Sales Adjustment (Expense or Deduction).

Question 8

Supplies Expense (2201)

Answer 8

Supplies Expense is a Cost of Services Expense.