While sales returns and allowances can be debited directly to the sales account, it is better to debit a separate sales returns and allowances account.

Question

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Debiting a separate sales returns and allowances account provides more detailed information about the types and amounts of returns and allowances, allowing for better analysis and decision making. It also makes the reconciliation of the sales account easier and more accurate.

While Sales Returns and Allowances Can Be Debited Directly to the Sales