Answered

Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

the sales returns and sales allowances accounts are classified as

Sagot :

anthougo

These two Sales Revenue accounts (the sales returns and sales allowances) are classified as Contra accounts.  They have debit balances unlike the Sales Revenue account.

  • The purpose of their creation is to maintain the Sales Revenue account at its gross amount for measure purposes.

  • The Sales Returns account is the General Ledger account for recording goods returned by customers.  It reduces the Accounts Receivable account, which is credited with Sales Returns.

  • The Sales Allowances account records allowances granted to customers for defective goods, which reduce their balances.

Thus, the two sales accounts are contra accounts and they have debit balances.

Read more: https://brainly.com/question/14869899

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.