A Sales Returns and Allowances Account Is Not Debited If

question 68

Multiple Choice

A Sales Returns and Allowances account is not debited if a customer

• A)returns defective merchandise.
• B)receives a credit for merchandise of inferior quality.
• C)utilizes a prompt payment incentive.
• D)returns goods that are not in accordance with specifications.

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Definitions:

Capacity Utilization Rate

A measure of how well an economy or a firm is using its productive capacity to manufacture goods or services.

Unemployment Rate

A gauge of the share of individuals in the labor pool who are not employed but are actively seeking a job.

Economy Operated

Refers to the manner in which a nation’s economic systems and policies are managed and function to produce goods and services.

Percent Unemployment

The slice of the labor force that remains without work but is actively engaging in job search.