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? (Appendix)

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Financial Accounting The Impact On Decision Makers

ISBN: 9780324655230

6th Edition

Authors: Gary A. Porter, Curtis L. Norton

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Question Posted: Jun 06, 2024 01:05 AM

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When a company gives a cash refund on returned merchandise, why doesnt it just reduce Sales Revenue instead of using a contra-revenue account?
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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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Financial Accounting The Impact On Decision Makers

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