It Is Important to Record Sales Returns and Allowances in a Separate

question 120

True/False

It is important to record sales returns and allowances in a separate account so that management can determine the volume of returns and allowances in order to measure the quality of their products.

---

Definitions:

Earn

To receive income in exchange for services rendered or as a return on investment.

Accumulate

The process of collecting or gathering an increasing quantity of a particular item or data points over time.

Post-Retirement Benefits

Benefits that an employee begins to receive after retiring from a company, including pensions, health insurance, and life insurance.