The Sales Returns and Allowances account does not provide information to management about
A) possible inferior merchandise.
B) the percentage of credit sales versus cash sales.
C) inefficiencies in filling orders.
D) errors in filling customers.

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances account tracks returns and allowances, which can indicate issues like inferior merchandise or errors in order fulfillment, but it does not provide information about the percentage of credit sales versus cash sales.

The Sales Returns and Allowances Account Does Not Provide Information