Sales Returns and Allowances
Sales Returns and Allowances (alternatively known as Sales Returns and Allowances account or SRA account) is a contra-revenue account that records price adjustments and allowances granted on merchandise that is defective and has been returned.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Sales Returns and Allowances account (SRA account). A contra-revenue account that records price adjustments and allowances granted on merchandise that is defective and has been returned.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
