Sales Allowance Is A Nominal Real Or A Personal Account

Sales Allowance (SA) Is Which Type Of Account?

Sales Allowance is not a real account as it is not related with assets and liabilities accounts as these types of accounts are permanent accounts and recorded in Balance Sheet.

Sales allowance is also not a personal account as it is not related with natural or living persons.

Sales allowance is a Nominal Account as it is a Contra Revenue Account which reduces Gross Sales in Income Statement i.e., we find out net sales by deducting SA from gross sales in the income statement.

So, we can say that SA is a nominal account but not a real account and a personal account.