Sales Returns and Allowances Is Credited for the Selling Price

question 13

True/False

Sales Returns and Allowances is credited for the selling price, including sales tax, of any merchandise returned by customers.

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Definitions:

Direct Labor

The wages and other costs for labor that are directly involved in the manufacturing of a product or the provision of a service.

Raw Material

The basic material from which a product is made, typically processed and used in the manufacturing process.

Materials Price Variance

The difference between the actual cost of raw materials and the expected (standard) cost, used in budgeting and financial analysis to gauge purchasing efficiency.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and are easily traceable to the final product.