14 "Sales" is a revenue account and like all revenue accounts it goes up with a credit. "Sales Returns Allowances " is a contra-revenue account that goes up with a debit. What does it mean when a merchant debits her Sales Returns & Allowances account? Why would a merchant use the contra-account rather than simply, directly reducing the Sales account? 21 When a company sells a piece of equipment, it must zero-out the accounts related to that equipment to get it off the books. In this process, the company may record a gain or loss on the sale. What is the journal entry to record a sale of equipment at a gain? What is the journal entry to record a sale of equipment at a loss? Or as a "break even" transaction