What is a Sales Account?

A sales account contains the record of all sales transactions. This includes both cash sales and credit sales . The account total is then paired with the sales returns and allowances account to derive the net sales figure that is listed at the top of the income statement .

The sales account concept can also refer to a current customer . Once sales are made to a customer, it is known as a sales account. Each sales account is typically assigned to either one salesperson (if the account is a small one) or to a team of salespeople (if the account is a major one).