What Is the Difference Between a Sales Return and a Sales

question 132

Multiple Choice

What is the difference between a sales return and a sales allowance?

• A)A sales return reduces the amount receivable from the customer, but an allowance does not.
• B)A sales return involves an adjustment to Inventory, but a sales allowance does not.
• C)A sales return requires a debit to Sales returns and allowances, but a sales allowance does not.
• D)A sales allowance is deducted from Sales revenue to calculate net sales, but a sales return is not.

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Definitions:

Points Along

Specific locations identified on a graph or line that represent data points or positions related to a particular value.

Budget Constraint

An economic model that shows the combination of goods and services a consumer can purchase with a given income.

CDs

Compact Discs, an optical storage medium used to store digital data including music, which has largely been replaced by digital downloads and streaming services.

Budget Constraint

The limitations on the consumers' ability to buy goods and services due to limited income and the prices of goods.