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posted Nov 20, 2019 1:59:14 PM

Are returns allowances and discounts the same as business expenses?

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1 Replies
Level 6
Nov 21, 2019 7:02:41 AM

Hi, thank you for using Intuit turbotax Live Community

Return and allowances on form T2125 are adjustments to sales. See below:

The example shows sales of  $11,100. But that amount includes returns of $100. This reduces the Gross Sales to $11,000. These items are technically adjustments to sales and not expenses. 

Hope this helps