Sales discounts and sales returns are accounted for as reductions of revenue. If they were accounted for

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Sales discounts and sales returns are accounted for as reductions of revenue. If they were accounted for as expenses, wouldn’t the effect on net income be the same? Why not just treat sales discounts and sales returns as expenses?

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Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

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Question Posted: Jun 22, 2012 06:50 AM

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Sales discounts and sales returns are accounted for as reductions of revenue. If they were accounted for

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There is a large conceptual difference between a reduction of revenue and an expense While it is tru...View the full answer

Financial Accounting Information For Decisions

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