A sales allowance is recorded as a debit to Accounts Receivable and a credit to Sales Allowances.

Name: A sales allowance is recorded as a debit to Accounts Receivable and a credit to Sales Allowances.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sales allowance represents a reduction in the amount owed by the customer to the seller, so it is recorded as a debit to Sales Allowances (reduces revenue) and a credit to Accounts Receivable (reduces the amount owed by the customer).

A Sales Allowance Is Recorded as a Debit to Accounts