The Sales Returns and Allowances account is on the income statement as an addition to Sales. presented on the balance sheet as a deduction from Accounts Receivable. on the income statement as a deduction from Sales. on the balance sheet as a deduction from Capital.

Question

Business

Trenton Petty

13 August, 07:59

The Sales Returns and Allowances account is on the income statement as an addition to Sales. presented on the balance sheet as a deduction from Accounts Receivable. on the income statement as a deduction from Sales. on the balance sheet as a deduction from Capital.

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Answers (1)

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Jovani Daniels · Answer 1

The Sales Returns and Allowances account is on the income statement as a deduction from Sales.

Explanation:

Sales Returns and Allowance account represent the balance of all sales that have been returned by the customers for any reason and discounts given to the customers. It is a contra sales account. It is presented on the income statement only as a deduction from sales. It is not presented on balance sheet. So, the correct option is on the income statement as a deduction from Sales.