Asked by RAM SAI DINESH REDDY on May 22, 2024
Verified
The Sales Returns and Allowances account and the Sales Discounts account are both classified as expense accounts.
Sales Returns And Allowances
Sales returns and allowances account for the reduction in sales revenues due to returned or defective products allowed by a company to its customers.
Sales Discounts
Reductions in the price of goods or services offered to customers, typically in exchange for early payment.
Expense Accounts
Accounts used to track the costs incurred in a business's operational activities, not directly tied to the production of goods or services.
- Detect and arrange the financial outlays involved with merchandising operations.
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Learning Objectives
- Detect and arrange the financial outlays involved with merchandising operations.
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