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What type of accounts are Sales Discounts and Sales Returns and Allowances? How are they presented in a multiple-step Income Statement?

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GinnyAnswer

Final answer:

Sales Discounts and Sales Returns and Allowances are shown as deductions from gross sales on a multiple-step income statement.


Explanation:

Sales Discounts and Sales Returns and Allowances are both considered contra-revenue accounts in accounting.

They are presented as deductions from gross sales to calculate net sales in a multiple-step income statement.

This method helps in understanding the impact of discounts and returns on the overall revenue of the company.


Learn more about Income Statements here:

https://brainly.com/question/33690617


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