The one part of this video that I did not agree with was having sales discounts and sales returns and allowances in the "Other Expenses" category.Both of these are contra revenue accounts and should not be included in the expense section of the income statement.They should be included in the revenue section as offsets to revenue.A good example of this is p.158 of our text - Illustration 4-2.

Sales Revenue$xxxxx

Less Sales Discounts$xxxxx

Less Sales Returns and Allowances$xxxxx$xxxxx

Net Sales$xxxxx