Under the perpetual inventory system,what is the difference between a sales return and a sales allowance?
A)A sales return reduces the amount receivable from the customer,but an allowance does not.
B)A sales return involves an adjustment to Merchandise Inventory,but a sales allowance does not.
C)A sales return requires a debit to Sales Returns and Allowances,but a sales allowance does not.
D)A sales return is not deducted from sales revenue to calculate net sales,but sales allowance is added to sale revenue.

Question

Quizplus · Accepted Answer

A sales return involves the physical return of merchandise, requiring an adjustment to Merchandise Inventory, whereas a sales allowance is a reduction in the selling price due to a defect or issue, without returning the merchandise.

Under the Perpetual Inventory System,what Is the Difference Between a Sales