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Sales Discounts carries a normal debit balance, which makes it a contra:
ARental account
BRefund account
CRevenue account
DReserve account
Answer & Solution
Correct answer: C. Revenue account
1. Sales normally carries a credit balance.
2. This account offsets it on the other side.
3. So it is a contra revenue account.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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