The sales returns and sales allowances accounts are classified as

1 answer:

6 0

These two Sales Revenue accounts (the sales returns and sales allowances) are classified as Contra accounts. They have debit balances unlike the Sales Revenue account.

The purpose of their creation is to maintain the Sales Revenue account at its gross amount for measure purposes.

The Sales Returns account is the General Ledger account for recording goods returned by customers. It reduces the Accounts Receivable account, which is credited with Sales Returns.

The Sales Allowances account records allowances granted to customers for defective goods, which reduce their balances.

Thus, the two sales accounts are contra accounts and they have debit balances.

You might be interested in

What happens in the process represented by the pseudocode below?

Lelechka [254]

Answer:

(A)The computer multiplies 4 and 9 if the answer is yes.

Explanation:

In the given pseudocode

get(answer)

if(answer is yes)

then(multiply 4 and 9)

if(answer is no)

then(do nothing)

In the pseudocode, the first step by the computer is to obtain the answer.

There are then two conditional statements.

1. if(answer is yes)

then(multiply 4 and 9)

2. if(answer is no)

then(do nothing)

From these two, we can see that:

The computer multiplies 4 and 9 if the answer is yes.

The correct option is A.

8 0

3 years ago

To be valid and enforceable, insurance contracts must meet which general legal requirements?

liq [111]

Answer and explanation:

There are four (4) legal requirements insurance contracts must meet to be considered valid and enforceable: the contract must have a legal purpose; both parties must have legal capacity to sign the contract; both parties must show proof that they agreed in the terms (benefits and obligations) of the contract; and, there must be a payment agreement for the services to be rendered.