Recording sales returns and allowances in a separate account is an important internal control that allows management to evaluate the volume of returns and allowances as a potential indicator of the quality of their products.
BT: Comprehension

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By recording sales returns and allowances separately, management can easily identify the volume and reasons for returns and allowances. This can provide insight into potential issues with product quality or customer satisfaction that need to be addressed.

Recording Sales Returns and Allowances in a Separate Account Is