When a company gives a cash refund
When a company gives a cash refund on returned merchandise, why doesn't it just reduce Sales Revenue instead of using a contra-revenue account?
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P acquired 80% of S on January 1, 2011 for $120,000. The market value of non-controlling interest was $30,000 on that date. The There a few intercompany transactions between P and S during 2011.
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