Sales Allowances and Sales Discounts Are Both Designed to Encourage

question 182

True/False

Sales allowances and Sales discounts are both designed to encourage customers to pay their accounts promptly.

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Definitions:

Drilling Rights

Legal permissions granted to an individual or company to explore and extract resources from the land.

Adjusting Entry

At the close of an accounting cycle, records are made in the accounting books to apportion earnings and expenditures to the actual period of occurrence.

Gallons

A unit of volume for liquid measurements in the United States, equivalent to 3.785 liters.

Mineral Rights

The legal rights to explore, extract, and sell minerals from a piece of land.