Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

What type of accounts are Sales Discounts and Sales Returns and Allowances? How are they presented in a multi-step income statement?

Sagot :

GinnyAnswer

Final answer:

Sales Discounts and Sales Returns and Allowances are contra revenue accounts that deduct from gross sales to calculate net sales on the income statement.


Explanation:

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

In a multi-step Income Statement, Sales Discounts and Sales Returns and Allowances are presented as deductions from gross sales to arrive at net sales.

Net sales is a critical figure in the income statement as it reflects the actual revenue generated by the business after accounting for discounts and returns.


Learn more about Sales Discounts and Sales Returns and Allowances here:

https://brainly.com/question/39555382


Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.