We all like to know we are making money, and the income accounts are where you collect this good news. A computerized accounting system assigns numbers 4000 to 4299 to income accounts.
Here are the key accounts you’ll find related to sales activity:
• Sales of Goods or Services (4000)
This account, which starts off every P&L statement, is where you track the company’s primary source of income from sales or services or both.
Although you might think of returns or allowances as expenses, they are tracked in this part of the P&L statement as negative sales because they directly impact the income numbers.
• Sales Discounts ...