Which of the Following Is an Advantage of Using the Net

question 86

Multiple Choice

Which of the following is an advantage of using the net price method for recording cash discounts on credit sales?

• A) It eases communication with customers about their balances.
• B) It conservatively reflects current period sales revenue.
• C) It simplifies recording of sales returns and allowances.
• D) It requires less record keeping than the gross method.