The Sales Discounts account is a contra account to the ________ account.

Question

Quizplus · Accepted Answer

The Sales Discounts account is a contra account that reduces the Sales Revenue account. Therefore, the correct answer is B, Sales Revenue. The Purchases account is used to record the cost of inventory purchased. The Merchandise Inventory account is used to track the cost of inventory on hand. The Sales Returns and Allowances account is used to record the reduction in sales revenue due to returns or allowances granted to customers.

The Sales Discounts Account Is a Contra Account to the ________