Which of the following is a business function related to sales returns and allowances?
A) processing customer orders
B) writing off uncollectible accounts
C) processing and recording credit memos
D) granting credit

Question

Quizplus · Accepted Answer

Processing and recording credit memos are related to sales returns and allowances. Credit memos are issued to customers who return goods or receive an allowance for damaged or defective goods. This function is important for maintaining accurate records of sales returns and allowances and ensuring proper accounting for these transactions. Processing customer orders (A) is related to the initial sale of goods, while writing off uncollectible accounts (B) and granting credit (D) are related to credit management and accounts receivable, respectively.

Which of the Following Is a Business Function Related to Sales