Are Purchases Returns And Allowances Assets
No, Purchases Returns And Allowances are not Asset s as both are Contra Expense Accounts to be deducted from Gross Or Total Purchases on Income Statement. Moreover, these two Types of Accounts are Temporary Accounts which means that these have no balances, so these are closed to Income Statement at the end to of the accounting period. Only Permanent Accounts are shown on the B alance Sheet as these have balances which are only closed on the liquidation of the business.