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Unformatted text preview: 2009-09-091ACCOUNTING FOR SALES DISCOUNTS AND RETURNS &amp; ALLOWANCES2009-09-09Accounting for Sales Discounts &amp; Returns &amp; Allowances2Accounting for Sales Discountsand Returns &amp; AllowancesAccounting for discounts, returns and allowances can be very complicated because the entry required depends on your role in the situation. It is very important that you understand what company you are recording transactions for so that you know if your company is the buyer or the seller.2009-09-0922009-09-09Accounting for Sales Discounts &amp; Returns &amp; Allowances3Accounting for Sales Discountsand Returns &amp; AllowancesMost companies are both the buyer and the seller at different points. You must isolate the specific event in question to determine if the company is the buyer or the seller for that specific situation. 2009-09-09Accounting for Sales Discounts &amp; Returns &amp; Allowances4Accounting for Sales Discountsand Returns &amp; AllowancesIf your company is purchasing inventory, then it is the role of the buyer that you should be...
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