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That is correct. Sales and returns allowances is what is called a "Contra" account because it exists to reduce the net balance of an account. Sales is a credit account, so you debit sales returns and allowances in order to reduce your net sales.
Wiki User
∙ 12y ago
Wiki User
∙ 13y agoYes, it is a contra-sales account.
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Does sales returns and allowances have normal credit balance?
No sales returns and allowances has debit balance as a normal balance because these accounts are contra to actual sales account and that's why account balance is reverse of actual sales account.
What accounts has a normal debit balance a Merchandise Inventory b Delivery Expense c Sales Returns and Allowances d Sales?
Sales Returns and Allowances
Purchase Return and Allowances is a contra account and its normal balance would be...?
a debit and credit
What is the journal entry for sales returns and allowances?
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
Account type of purchase returns and allowances?
debit
Does sales returns and allowances have normal credit balance?
No sales returns and allowances has debit balance as a normal balance because these accounts are contra to actual sales account and that's why account balance is reverse of actual sales account.
What accounts has a normal debit balance a Merchandise Inventory b Delivery Expense c Sales Returns and Allowances d Sales?
Sales Returns and Allowances
Purchase Return and Allowances is a contra account and its normal balance would be.?
a debit and credit
Purchase Return and Allowances is a contra account and its normal balance would be?
a debit and credit
Purchase Return and Allowances is a contra account and its normal balance would be...?
a debit and credit
What is sales returns and allowances classified as?
An income account. Debit Returns & Allowances, Credit Cash.
What is the journal entry for sales returns and allowances?
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
Account type of purchase returns and allowances?
debit
Which account has a normal debit balance?
Does work-in-process has a normal balance as a debit or credit
Is purchases a normal debit or credit balance?
debit balance
Is cash a normal debit or credit balance?
normal debit
What account has a normal debit balance?
debit
