A sales discount account is a contra-revenue account.
combind revenue accounts
Sales is a revenue account and has a credit balance as a normal balance.
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
Revenue
Sales revenue is a typical one. Dr. A/R Cr. Sales Revenue
A sales discount account is a contra-revenue account.
combind revenue accounts
when revenue is earned from charge-account sales, the accountant debits __________ and credits___________
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
Sales is a revenue account and has a credit balance as a normal balance.
Sales discount account has debit balance as it causes the reduction of sales and hence a contra account of sales revenue account.
Revenue
Sales
when revenue is earned from charge-account sales, the accountant debits __________ and credits___________
Neither. Sales revenue is a P&L account, not a balance sheet account. When booking an entry to sales you would credit sales and either debit cash or accounts receivable.
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