A sales return should be treated in the same way as a bad debt.

Name: A sales return should be treated in the same way as a bad debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A sales return is not the same as a bad debt. A sales return occurs when a customer returns goods due to issues such as damage, defect, or incorrect order. On the other hand, a bad debt occurs when a customer fails to pay for goods or services that were provided. These two transactions have different accounting treatments, so they should not be treated in the same way.

A Sales Return Should Be Treated in the Same Way