When the Net Price Method Is Used to Record Credit

question 121

Multiple Choice

When the net price method is used to record credit sales, the sales discounts not taken account is reported as an)

• A) addition to sales returns and allowances on the income statement.
• B) deduction from gross sales on the income statement.
• C) deduction from selling expenses on the income statement.
• D) addition to sales revenue on the income statement.

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Definitions:

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A measure of an individual's or family’s social standing or class, determined by a combination of income, education, and occupation.

Neighborhood

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The idea that abilities, personality, and other human characteristics are moldable, and thus can change.