Sales returns:
A) Refer to merchandise that customers return to the seller after the sale.
B) Refer to reductions in the selling price of merchandise sold to customers.
C) Represent cash discounts.
D) Represent trade discounts.
E) Are not recorded under the perpetual inventory system until the end of each accounting period.

Question

Quizplus · Accepted Answer

Sales returns refer to merchandise that customers return to the seller after the sale. This can occur for various reasons, such as defects in the product or customer dissatisfaction. The seller should have a policy in place for handling sales returns and recording them in their accounting records.

Sales Returns