What is the Purpose of Contra Revenue Accounts
Objective Or Purpose of Contra Revenue Account To Provide Accurate Figure of Net Sales ge nerated by the business for the accounting period. To Provide Relia ble, True and Fair information about the actual net sales made during the period. Companies provides Sales Discounts or Sales Allowances to customers when the customers pay before due date or when they retain the goods or products due to lowering of the price offered to them by company. To Promote products or services because sales discounts influence the customers to buy more products or services at reasonable price quality.