Purchases
Expense Account
Income Statement
DEBIT
Transportation-IN
Expense Account
DEBIT
Purchases Returns & Allowances
Contra Account in the cost of goods sold section on the income statement
Transportation-OUT
Selling Expense Account
Purchase Discounts
Contra Account to Purchases
Sales Returns & Allowances
Contra Sales Account
Debit Sales Returns & Allowances
Credit Accounts Recievable
Sales Discounts
Sales Contra Account
Operating Expense (S,G, & A Expense)
Expense
Allowance for Doubtful Accounts
A contra asset to accounts recievable
debit allowance for doubtful accounts
credit accounts recievable
CREDIT