The Sales Returns and Allowances Account and the Sales Discount

question 238

True/False

The Sales Returns and Allowances account and the Sales Discount account are both classified as expense accounts.

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Definitions:

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by the parties involved, to be enforceable.

Lease of Goods

A contractual agreement in which one party, the lessor, grants the other party, the lessee, the right to use an asset, such as equipment or vehicles, for a specified period in exchange for payment.

Statute of Frauds

A legal concept that requires certain contracts to be in writing and signed by all parties involved to be enforceable.

Oral Contract

An agreement between parties that is not written but is fully valid and enforceable if it meets certain legal criteria.