The Sales returns and allowances account is classified as an:
A) asset account.
B) contra asset account.
C) expense account.
D) contra revenue account.

Name: The Sales returns and allowances account is classified as an: A) asset account. B) contra asset account. C) expense account. D) contra revenue account.
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Question

Quizplus · Accepted Answer

Sales returns and allowances is a contra revenue account to Sales revenue. Sales returns and allowances are deducted from Sales revenue to give net sales revenue.

The Sales Returns and Allowances Account Is Classified as An