Sales Returns & Allowances is recorded on the:

A) Balance Sheet.
B) Statement of owner's equity.
C) Income Statement.
D) None of these is correct.

Sales Returns & Allowances

Transactions where sellers accept returned goods from buyers, or provide a price reduction or discount, reducing the initial sales revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.