Management may be alerted to a quality problem with their merchandise by a sudden increase in which account?
A)Sales
B)Sales Returns and Allowances
C)Sales Discounts
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

An increase in Sales Returns and Allowances account indicates that customers are returning merchandise due to quality issues, which is a clear indicator of a quality problem with the merchandise. The other accounts listed (Sales, Sales Discounts, Cost of Goods Sold) may not necessarily indicate a quality problem.

Management May Be Alerted to a Quality Problem with Their