Debiting the Sales Returns and Allowances account will have the same effect on sales as a deduction from the Sales account.

Name: Debiting the Sales Returns and Allowances account will have the same effect on sales as a deduction from the Sales account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Debiting the Sales Returns and Allowances account means that we are reducing the amount of sales revenue we originally recorded. This has the same effect on sales as deducting the amount directly from the Sales account, so the statement is true.

Debiting the Sales Returns and Allowances Account Will Have the Same