Which of the following accounts would be decreased by a credit entry? a

Marketing Dec 20, 2020

Which of the following accounts would be decreased by a credit entry?

a. Sales

b. Accounts Payable

c. Notes Payable

d. Finished Goods Inventory

Expert Solution

The answer is d. Finished Goods Inventory

Finished Goods Inventory is an asset. An increase of Finished Goods Inventory requires the account to be debited and credited if it decreases.

Sales normal balance is credit. An increase in sales requires the account to be credited. Accounts Payable and Notes Payable are liabilities which have a normal balance of credit. An increase on these accounts will require the accounts to be credited.

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