Differences Between Sales And Sales Returns
Goods sold are called Sales while Sales Returns is t he retur ning of goods to customers due to defective or damaged goods. T he mai n or primary difference b etwee n sales and sales returns is t hat sales is the selli ng pf goods eit her for cash or o n account w hile sales retur ns is t he retur ning of goods by t h e customers to t h e company due to defective goods or damaged goods w hich is deducted from total sales. Sales is t he direct reve nue and recorded in t he Income Statement w hile sales retur ns is t he Contra Revenue Account w hich is deducted from Gross or Total Sales i n Income Statement.