To determine how much merchandise was returned from a company's customers,the company should review the:
A)Purchases Returns and Allowances Account.
B)Purchases Discount Account.
C)Sales Returns and Allowances Account.
D)Freight-In.

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances Account tracks the amount of merchandise returned by customers, and is therefore the best choice for determining the amount of merchandise returned. The Purchases Returns and Allowances Account tracks the amount of merchandise returned to vendors, the Purchases Discount Account tracks discounts received for early payment of purchases, and Freight-In tracks the cost of shipping goods purchased from a vendor. None of these would provide the information needed to determine how much merchandise was returned by customers.

To Determine How Much Merchandise Was Returned from a Company's