Question

which of these listed is the sales allowance account? Group of answer choices Contra Revenue account...

which of these listed is the sales allowance account? Group of answer choices

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

Contra Revenue account representing seller reduction of customers’ balance owed or provision of a partial refund because of some deficiency in the company’s product or service.

Contra asset account representing the amount of accounts receivable that we do not expect to collect.

An account with a balance that is opposite, or contra, to that of its related (companion) revenue account

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Answer #1

The correct answer is

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

Explaination

Sales allowance is contra revenue account as it is reduced from sales account and then net sales are drived. any discount offered to payment with in specified period is entered in this account and then net with sales. So the correct answer is

Contra Revenue account representing the reduction in the amount to be paid by a credit customer if payment on account is made within a specified period of time.

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