When a company gives a cash refund on returned merchandise, why doesnt it just reduce Sales Revenue

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When a company gives a cash refund on returned merchandise, why doesn’t it just reduce Sales Revenue instead of using a contra-revenue account?

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Using Financial Accounting Information The Alternative to Debits and Credits

ISBN: 978-1133161646

7th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jan 12, 2012 02:57 AM

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When a company gives a cash refund on returned merchandise, why doesnt it just reduce Sales Revenue

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The use of a contrarevenue account to record cash refunds an...View the full answer

Using Financial Accounting Information The Alternative to Debits and Credits

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