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No, as Allowa nce for Doubtful Debts or Allowance for Doubtful Accounts is a Contra Asset Account which is just an estimation of either N et sales or closing balance of Accounts Receivable in order to match sales with Uncollectible Accounts Expense / Doubtful Debts according to Matching Principle . Allowance for Doubtful Debts T Account is prepared to record entries related to it and closing balance is deducted from Accounts Receivable on balance sheet in order to find out its net Realizable Value or Cash Realizable Value. However, Doubtful Debts or Uncollectible Expense Account is considered as An Expense and recorded in Income Statement in that accounting period in which these are incurred.

Capital is considered as an Internal Liability because the amount of cash, goods, assets invested by the sole owner or owners in the business are payable by the business to its owners. It is the claims or rights of the owners of the business against the Assets of the business. In fact, there are two claims against the assets of the business. One is from External Parties known as External Liabilities Or Simply Liabilities while claims from owners of the business is considered as Internal Liabilities or Equity in case of company or Owner’s Equity or Capital in case of Proprietorship or Partnership B usinesses. The business being a Separate Legal Entity according to B usiness Entity Concept , is bound to pay not only its external liabilities but also its internal liabilities in order to own the rights of its assets.

There are 4 types of Sales accordi ng to Business Transactions which are given below: Cash Sales Whe n goods sold or services rendered for cash, then it is called Cash Sales . Credit Sales Goods sold or services re ndered on credit or on account is called Credit Sales . Adva nce Payment Sales When the customers make advance payments to company before the company actually delivers the goods or renders the services to them. After Sales Payment When the company delivers the goods or renders the services to customer but still the payment is not received from the customer. It is the reversal of advance payment sales as here the company actually delivered the goods or rendered the services but the customer pays after receiving the goods or serving the services.

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.

There are 10 Steps in the Accounting Cycle . Missing of any of the step would not give accurate, true & fair view information of Financial Statements To the Users of Financial Statements . These 10 steps are shown below: 1. Analyzing the Monetary Transactions And Recorded In Source Documents i.e., Voucher, Invoice 2. Journalizing the B usiness Transactions (Preparing General Journal, Special Journals) 3. Posting the Accounts To Ledger (Preparing General Ledger And Subsidiary Ledgers) 4. Preparing Unadjusted Trial balance 5. Recording Adjusting Entries related to Deferrals And Accruals according to Accrual B asis of Accounting 6. Preparing Adjusted Trial balance where the balances of Temporary Accounts and Permanent Accounts are updated 7. Preparing Financial Statements (Income Statement or Statement of Comprehensive Income, B alance Sheet or Statement of Financial Position, Statement of Cash...

A Trial Balance shows the finalized closing balances of Different Types of Accounts before Adjustments , after Adjusting Entries and Closing Entries are recorded while the Profit and Loss Account or Income Statement shows the lists of Revenues And Expenses in order to match these Temporary Accounts to find out the N et Income / N et Profit or financial performance of the business for the accounting period. A B alance Sheet shows the financial position of Permanent Accounts’s balances (Assets, Liabilities & Equity) on a particular time. Trial balance is the based for the preparation of  Financial Statements  while Profit And Loss Account provides  N et Income or  N et Loss to be added or deducted from Capital or Equity on balance sheet while balance sheet shows the financial position of the business due to the initial operations or activities & performance performed by the management of the company to operate the business successfu...

No, as Sales Retur n is a Co ntra Revenue Account which is deducted from Gross or Total Sales on Income Statement. It is the reversal or opposite of Sales Account . Actually, Sales Return decreases the Sales Account as the customer returned the goods due to damaged goods, defective goods, sales order is not made according to the purchase order given by buyer to seller and such other valid reasons. So, it can’t be treated as an Expense .