When Goods from a Cash Sale Are Returned, the Effect

question 27

Multiple Choice

When goods from a cash sale are returned, the effect on the seller's accounts will be

• A) an increase in net sales.
• B) a decrease in gross sales.
• C) an increase in gross sales.
• D) a decrease in net sales.

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Definitions:

Restatement (Second)

A collection of model legal statutes designed to clarify and unify the law, specifically referring to the second series of restatements covering various areas of law.

Restatement of Torts

A set of legal principles concerning civil wrongs that cause harm or loss, serving as a guide for courts.

United States Constitution

The supreme law of the United States, establishing the framework of national government and the rights of the citizens.

Contractual Capacity

The legal ability of a person or entity to enter into a binding contract, which generally requires them to be of a certain age and have a sound mind.