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7 July, 13:44

The Sales Returns and Allowances account is on the income statement as an addition to Sales. presented on the balance sheet as a deduction from Accounts Receivable. on the income statement as a deduction from Sales. on the balance sheet as a deduction from Capital.

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  1. 7 July, 16:14
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    The Sales Returns and Allowances account is on the income statement as a deduction from Sales.

    Explanation:

    Sales Returns and Allowance account represent the balance of all sales that have been returned by the customers for any reason and discounts given to the customers. It is a contra sales account. It is presented on the income statement only as a deduction from sales. It is not presented on balance sheet. So, the correct option is on the income statement as a deduction from Sales.
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Home » Business » The Sales Returns and Allowances account is on the income statement as an addition to Sales. presented on the balance sheet as a deduction from Accounts Receivable. on the income statement as a deduction from Sales.
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