When Using the Five-Step Model, the Entry to Record the Return

question 114

Multiple Choice

When using the five-step model, the entry to record the return of goods from a customer would include a

• A)debit to Sales.
• B)credit to Sales.
• C)debit to Refund Liability.
• D)credit to Refund Liability..

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Definitions:

Franchising

A method of business expansion where a company (franchisor) allows individuals (franchisees) to operate a business using its trademarks and business model.

Franchisor Fee

A payment made by a franchisee to the franchisor, typically including an upfront purchase price and ongoing royalty fees, for the right to use the franchisor's brand, products, and operational support.

Commission

A service charge assessed by a broker or investment advisor in return for providing investment advice or handling purchases and sales of securities.

Sales Value

The total revenue generated from the sale of goods or services.