Sales Returns and Allowances and Sales Discounts Are ________

Multiple Choice

Sales returns and allowances and Sales discounts are ________.

A) contra-asset accounts and are netted against Accounts receivable on the balance sheet
B) contra-expense accounts and netted against Cost of goods sold on the income statement
C) expense accounts and added to Sales on the income statement
D) contra-revenue accounts and netted against Sales on the income statement