The Return of Merchandise by a Credit Customer Was Recorded

question 16

Multiple Choice

The return of merchandise by a credit customer was recorded with a debit to Accounts Payable and a credit to Accounts Receivable and the subsidiary ledger. This error will cause

• A) the net income for the period to be overstated.
• B) the net income for the period to be understated.
• C) the control account to not agree with the subsidiary ledger.
• D) the assets to be overstated.

---

Definitions:

Geodemographic Database System

A system that combines demographic, geographic, and socio-economic data for use in market analysis and segmentation.

Distribution Intermediaries

Firms or individuals such as brokers and retailers that act as middlemen in the sales chain, helping to move products from producers to consumers.

Accessibility

The ease with which people can use and access facilities or services, including those with disabilities.

Site Selection

The process of determining the most suitable location for a business or project, considering factors like cost, accessibility, and market potential.