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

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when a customer returns goods for a refund, it is known as a sales return. A sales discount (choice A) is a reduction in the selling price offered to the customer in exchange for immediate payment. A sales allowance (choice B) is a reduction in the selling price offered to the customer due to a defect or other circumstance. A sales adjustment (choice D) is a general term that could refer to any change made to sales data, including returns, discounts, and allowances. However, in this context, sales return is the most specific and accurate term.

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