Zhang Corporation Returned $6000 of Defective Goods to Meli Inc

question 98

Multiple Choice

Zhang Corporation returned $6000 of defective goods to Meli Inc.Meli has a strict policy of no cash refund.Meli should

• A)write off the account receivable.
• B)issue a credit memo to Zhang.
• C)wait until Zhang places its next order to record the return.
• D)not adjust their accounting records since $6000 is not material for Meli.

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Definitions:

Experimenter Bias

In experimental design, the problem of some kind of bias in an experimental group because of the way the researcher, knowingly or unknowingly, has selected its members.

Internal Validity

The degree to which the results of a study can be attributed to the experimental treatments or interventions rather than other factors.

Spurious Relationship

An apparent relationship between two variables that is actually caused by a third variable.

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific study or experiment.