Accounting Chapter 11

Net income increases a corporation's total owner's equity.

A return of merchandise to the vendor results in a

A corporation's Dividends account is a temporary account.

Entries in the general journal only affect account balances in general ledger accounts.

A general journal entry posted to Accounts Payable will also be posted to an accounts payable account.

The normal account balance of Sales Return and Allowances is a credit.

The normal balance of Purchases Returns and Allowances is a debit.

A customer notifies the vendor that purchased merchandise is damaged and cannot be sold at normal price. Any credit granted to the customer would be called a

A correction of a transaction posted to the wrong customer account results in

The amount of a dividend is normally calculated as