Sales return and allowances refer to the sales adjustment as a result of the return of … See more

As mentioned above, sales return and allowances is a contra account of sales revenue account. To arrive at net sales, we take the gross sales or simply sales revenue mi… See more

In order to clearly understand the accounting for sales returns and allowances, let’s go through the example below. Let’s assume that ABC Co sells goods to it… See more

The accounting for sales returns and allowances is very straightforward. The sales return and allowances account under the periodic inventory system is recorded the same w… See more