Differences Between Sales And Sales Returns

Goods sold are called Sales while Sales Returns is the returning of goods to customers due to defective or damaged goods.

The main or primary difference between sales and sales returns is that sales is the selling pf goods either for cash or on account while sales returns is the returning of goods by the customers to the company due to defective goods or damaged goods which is deducted from total sales.

Sales is the direct revenue and recorded in the Income Statement while sales returns is the Contra Revenue Account which is deducted from Gross or Total Sales in Income Statement.