 Sales returns & allowances ◦ When customer returns goods or the seller grants a reduction in price to customer ◦ Contra-revenue account (debit balance)  Sales discounts ◦ If customer pays within the discount period allowed by the seller ◦ Contra-revenue account (debit balance)  Freight out ◦ Delivery expense ◦ If terms are FOB shipping point 20Copyright (c) 2009 Prentice Hall.
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