Select the one term that best fits each definition
-Credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the accounts receivable of the merchandising business.
A) board of directors
B) credit memorandum
C) debit memorandum
D) declaring a dividend
E) dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question

Quizplus · Accepted Answer

A sales allowance occurs when a customer is given a reduction in the sales price without returning the merchandise, leading to a decrease in the seller's accounts receivable.

Select the One Term That Best Fits Each Definition