Sales Returns and Allowances appear on the:

Question

Quizplus · Accepted Answer

Sales Returns and Allowances are considered as operating expenses and are reported on the Income Statement, which shows the company's performance over a specific period of time by summarizing its revenues, expenses, gains, and losses. These transactions do not affect the Balance Sheet or the Statement of Retained Earnings directly unless they cause any changes in the related accounts. Therefore, option (C) is the best choice.

Sales Returns and Allowances Appear on The