Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
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
Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.