Which of the following is a TRUE statement concerning Credit Memorandums?
A) Results in a decrease in Sales Returns and Allowances
B) Results in an increase in Sales Returns and Allowances
C) Increases sales
D) Has no effect on net sales

Question

Quizplus · Accepted Answer

Credit Memorandums are issued to customers for a variety of reasons, such as returns, allowances, rebates, or discounts. These transactions result in an increase in Sales Returns and Allowances, thereby reducing net sales.

Which of the Following Is a TRUE Statement Concerning Credit