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Customers who return unsatisfactory merchandise receive a refund or an adjustment to their bill.

Customers who return unsatisfactory merchandise receive a refund or an adjustment to their bill.

Sales returns and allowances must be deducted from gross sales revenue in determining net sales.

Sales returns and allowances must be deducted from gross sales revenue in determining net sales.

Sales returns are often accumulated in a separate account called Sales Returns and Allowances.

Sales returns are often accumulated in a separate account called Sales Returns and Allowances.

Sales returns are typically reported separately on income statements prepared for external users.