Accounting

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z

  Dictionary  »  Letter S  »  sales returns and allowances

sales returns and allowances

A contra revenue account that reports 1) merchandise returned by a customer, and 2) the allowances granted to a customer because the seller shipped improper or defective merchandise. This of course will reduce the seller's accounts receivable and is subtracted from sales (along with sales discounts) to arrive at net sales.


» For more clarity on this term: 

  ← Go Back






Join our Newsletter

Accounting Cheat Sheet

Receive our free 19-page accounting cheat sheet. Plus, stay up to date with the latest questions answered.