On the Income Statement, Sales Returns and Allowances have the effect of
A)decreasing total revenue.
B)increasing total revenue.
C)increasing total expenses.
D)decreasing total expenses.

Question

Quizplus · Accepted Answer

Sales Returns and Allowances refer to the amount of money refunded or credited to customers for returned goods or items sold at a discount. This reduces the total revenue reported on the income statement since the original sale is being partially or fully reversed.

On the Income Statement, Sales Returns and Allowances Have the Effect