Sales Return Is Which Type of Account

Is Sales Return A Nominal, Real Or A Personal Account?

Sales Return is not a Real Account as it is not related with assets and liabilities accounts i.e., these accounts are recorded in balance sheet while sales return account is recorded in Income Statement.

Sales return is also not a personal account as it is not related with natural or living persons such as Mr. X Account is a personal account as it belongs to a natural person i.e., a sole owner, let’s say.

Yes, it is a nominal account and it is deducted from Gross Sales on Income Statement as it is a Contra Revenue Account. It reduces total sales which is also a nominal account.

So, we learn that a sales return is a nominal account as it is a contra revenue account but not a real and personal account in accounting.