Sales Returns and Allowances: debit or credit?
Sales Returns and Allowances increases on the debit side and decreases on the credit side: its normal balance is a debit.
A contra-revenue account reduces revenue, such as sales returns or discounts allowed. It increases with a debit.
Name in each convention
Account names and codes follow each convention; an account that does not exist in a convention is not offered there.
| Convention | Account |
|---|---|
| United States (US textbooks) | Sales Returns and Allowances |
| Spain (PGC 2007) | 708 Devoluciones de ventas y operaciones similares |
| France (PCG 2025) | — |
| Germany (generic accounts) | — |