Which of the following describes Sales Returns and Allowances?
A)A revenue account with a normal credit balance.
B)A contra revenue account with a normal debit balance.
C)A contra expense account with a normal credit balance.
D)An expense account with a normal debit balance.

Question

Quizplus · Accepted Answer

Sales Returns and Allowances is a contra revenue account, which means it has a normal debit balance. This account is used to record returns and allowances given to customers, which reduces the amount of revenue earned by the company.

Which of the Following Describes Sales Returns and Allowances