The Sales Returns and Allowances account and the Sales Discount account are both classified as expense accounts.

Name: The Sales Returns and Allowances account and the Sales Discount account are both classified as expense accounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Sales Returns and Allowances account and the Sales Discount account are both classified as contra-revenue accounts, not expense accounts. They are used to reduce or adjust the sales revenue account based on returns, allowances, or discounts given to customers.

The Sales Returns and Allowances Account and the Sales Discount