Sales Allowance Is A Nominal Real Or A Personal Account

Sales Allowance 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.

So, sales allowance is a nominal account but not a real account and a personal account.