When a Customer Returns Merchandise, the Entry Includes

question 128

Multiple Choice

When a customer returns merchandise, the entry includes

• A)a credit to Refund Liability.
• B)a credit to Estimated Inventory Returns.
• C)a credit to Inventory.
• D)a debit to Sales.

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Definitions:

Duty of Care

A legal obligation requiring individuals to exercise a reasonable level of care while performing actions that could foreseeably harm others.

Business Location

The physical place where a company is situated or operates from, including offices, retail stores, or manufacturing facilities.

Tract of Land

A large, defined area of land, which can be used for farming, development, or conservation purposes.

Profitability

The ability of a business or activity to generate income or profit exceeding its expenses and costs.