Sales 563400
less:sales return 18690
Net Sales 544710
Sales Returns and Allowances is a contra income account.
Sales Returns and Allowances are contra revenue accounts because they reduce that total amount of sales. [Sales-Sales returns and allowances=Net sales]. They are reported on the income statement.
By measuring with a tape and marking with a pencil or marker.
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
--> another term for Statement of Earnings is Income Statement --> in income statement, you deduct the Sales Return & Allowances from the Gross Sales to come up with Net Sales --> in presentation purposes, usually it is only the Net Sales account that is shown
DR Operational Expenses CR Accounts Payable
DR Operational Expenses CR Accounts Payable
Sales Returns and Allowances is a contra income account.
Operating Expenses (Debit) 6,600 Cash (Credit) 4,600 Accounts Payable (Credit) 2,000
An income account. Debit Returns & Allowances, Credit Cash.
A contra purchase account
Lottery for Education Account
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.
accounts payable
debit
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
An operating account is used for day-to-day expenses of the HOA, such as maintenance, repairs, and utilities. It is funded by monthly dues and other regular income. A reserves account, on the other hand, is specifically designated for major repairs and replacements, such as roof replacements or pavement repairs. This account is funded by setting aside a portion of the monthly dues into a separate reserves fund to ensure that there are sufficient funds available for these larger expenses when they arise.