Why are contra-revenue accounts used for sales discounts, Accounting Basics

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Why are contra-revenue accounts used for sales discounts

Question: 1. Why are contra-revenue accounts used for sales discounts and sales returns and allowances rather than direct deductions from the sales account?

2. What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and interpretation assuming net sales revenue is $100,000 and cost of goods sold is $60,000.

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Accounting Basics: Why are contra-revenue accounts used for sales discounts

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