Sales 370 000
Discount revenue 2 000
Commissions revenue 5 000
Interest revenue 4 000
Rent revenue 2 500
Purchases 308 500
Freight inwards 4 200
Packaging expenses 2 750
Advertising expenses 2 300
Sales staff salaries 6 000
Admin office staff salaries 4 500
Electricity – admin office 2 100
Electricity - sales office 2 900
Warehouse rent 8 500
Insurance expense - warehouse 2 000
General insurance expense 5 500
Telephone - admin office 3 400
Telephone - sales office 3 800
Bad debt expense 1 300
Discount expense 2 900
Interest expense 2100
Cash at bank 53 560
Accounts receivable 22 000
Inventories 1.1.2019 15 500
Furniture 15 000
Delivery vehicle 20 000
Office equipment 13 000
Term deposits 29 000
Accounts payable 7 260
Bank loan 10 000
Mortgage loan 12 500
Capital 135 000
Drawings 17 450
Which of the above comes under sales return and allowance
Sales return and allowance typically includes transactions related to discounts, bad debt expense, and discount expense.
In this list, the following items can be classified under sales return and allowance:
- Discount revenue
- Discount expense
- Bad debt expense
These items are related to adjustments made to the sales revenue due to discounts given, bad debts incurred, and discounts on returns or allowances provided to customers.