Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

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

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.