Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive 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 appreciate your time. Please come back anytime for the latest information and answers to your questions. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.