Sales Report Not Showing All Items In Cash Sale

The client has a scenario where some miss match in margin amount calculation in two reports.
Some items in Cash Sales and Invoices not showing in any Sales Report even if Cash Basis Reporting = F in Setup > Accounting > Accounting Preferences > General tab and proper date filters are set.
One report used here is Sales and the other is Tax Transaction.

The reason behind the issue was in the sales report uses the account type of Income or Other Income in the item record for it to appear in the Sales Reports.

Other types of income accounts will not appear in the sales report.

Sales Reports display only transactions with Items that post to Income or Other Income accounts. As such, if one observes transactions not displayed on Sales Reports, do the following:

1. Open the transaction record
2. Check the Item in the transaction record and open the Item record
3. On the Item record, click the Accounting tab and take note of the value in the Income Account field
4. Navigate to Lists > Accounting > Accounts, and check the type of the account used. It should either be Income or Other Income for it to appear in the Sales Reports.