What is the difference between a sales return and a sales allowance?
A)A sales allowance is deducted from Sales revenue to calculate net sales, but a sales return is not.
B)A sales return requires a debit to Sales returns and allowances, but a sales allowance does not.
C)A sales return reduces the amount receivable from the customer, but an allowance does not.
D)A sales return involves an adjustment to Inventory, but a sales allowance does not.

Question

Quizplus · Accepted Answer

A sales return involves the customer returning the product, which requires an adjustment to Inventory, whereas a sales allowance is a reduction in the sales price due to issues with the product or service, without returning the product.

What Is the Difference Between a Sales Return and a Sales