Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Sales Discounts is a __________ account.

A. contra asset
B. expense
C. asset
D. revenue
E. contra revenue

Sagot :

GinnyAnswer

Final answer:

Sales Discounts is a contra revenue account used to track reductions in revenue due to discounts, ensuring accurate financial representation.


Explanation:

Sales Discounts is a contra revenue account. It is used to track the reduction in revenue that occurs when customers are given discounts on the listed price of goods or services.

For instance, if a product is listed for [tex]$100 but a customer is given a 10% discount, the actual revenue earned will be $[/tex]90. This $10 difference is recorded in the Sales Discounts account.

It helps in presenting a more accurate picture of a company's financial performance by reflecting the impact of discounts on the reported revenues.


Learn more about Sales Discounts

We appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.