In a perpetual inventory system,merchandise returned by the customer for a refund is called a:
A) sales return.
B) sales allowance.
C) sales discount.
D) sales adjustment.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, merchandise returned by the customer for a refund is recorded as a sales return. This allows for the inventory levels to be adjusted accordingly and for accurate financial reporting. Sales allowance and sales discount refer to reductions in the selling price, while a sales adjustment is a more general term that could refer to any kind of adjustment made to sales transactions.

In a Perpetual Inventory System,merchandise Returned by the Customer for a Refund