Asked by Kiirt Giosk on May 26, 2024
Verified
Sales Returns and Allowances is increased when
A) an employee does a good job.
B) goods are sold on credit.
C) goods that were sold on credit are returned.
D) customers refuse to pay their accounts.
Sales Returns
Transactions where customers return previously purchased merchandise for a refund, replacement, or credit toward future purchases.
Credit Sales
Sales made on credit, where the payment is received after the delivery of the goods or services.
Contra-Revenue
An account that offsets revenue accounts on the income statement, typically related to returns, allowances, and discounts.
- Comprehend the accounting processes for sales returns, allowances, and discounts, along with their effects on financial statements.
Verified Answer
Learning Objectives
- Comprehend the accounting processes for sales returns, allowances, and discounts, along with their effects on financial statements.
Related questions
If a Customer Agrees to Retain Merchandise That Is Defective ...
The Sales Returns and Allowances Account Does Not Provide Information ...
If the Accounts Receivable Turnover Ratio Increases,the Number of Days ...
The Return of Merchandise to the Supplier for Credit Using ...
A Contra-Revenue Account with a Debit Balance for Returned Goods ...