If a Customer Receives Goods That Are Damaged but Does

question 25

True/False

If a customer receives goods that are damaged but does not want to return the goods to the seller, the seller can offer a reduction in the selling price which is known as an allowance.

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Definitions:

Source Documents

Original records and documents that provide evidence of financial transactions and are the foundation for recording entries in the business’s accounting system.

Sales Receipts

Documents that evidence the sale of goods or services and the payment received for those sales.

Bank Statements

Monthly or quarterly documents issued by a bank detailing all transactions in a customer's account.

Cash Dividends

Payments made by a corporation to its shareholders, typically out of its earnings, as a distribution of profits.