参考资料

In case the company uses or maintain the allowance for sales discount account, then the records will as the following: Dr - Cash/Bank $24,250. Dr - Allowance for Sales Discounts $750. Cr - Accounts Receivable $25,000. Both cash or sales discount and allowance for sales discount is the same.

Sales Discounts, Returns and Allowances are contra revenue accounts, also known as contra sales accounts, with debit balances that reduce the gross Sales Revenue credit balance on an income statement in order report the net Sales Revenue generated by a business for an accounting period. Find out more about contra revenue accounts. Sales Discounts.

A sales allowance refers to the price reduction in the actual selling price provided to a customer. It occurs when the product is defective or performs below par with its expectation. It serves to compensate the customer for the defective product. Sales allowances aim to strike a balance between meeting customer expectations and maintaining ...