Asked by Ebba Maria Stillman on Jun 28, 2024
Verified
Purchase allowances refer to merchandise a buyer acquires but then returns to the seller.
Purchase Allowances
A reduction in the purchase price, allowed by the seller to the buyer, often due to minor defects or quality issues in the goods.
Buyer Acquires
The process where a buyer takes possession or ownership of goods or property from a seller.
- Distinguish between purchase allowances, sales returns, and other adjustments.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
False
Explanation :
Purchase allowances refer to reductions in the purchase price granted by the seller to the buyer, not returned merchandise. Returned merchandise would be considered a sales return, which may result in the buyer receiving a refund or credit from the seller.
Learning Objectives
- Distinguish between purchase allowances, sales returns, and other adjustments.
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