Examlex
Which of the following statements is true?
Purchases Returns and Allowances
Transactions involving the return of goods to suppliers or receiving discounts due to issues like damaged goods, leading to a reduction in purchase costs.
Merchandise Inventory
The goods a company holds in stock with the intention of selling them as part of its business operations.
Freight-In
Freight-in refers to the shipping cost associated with getting goods delivered from suppliers to the buyer, often included in the inventory cost of purchased goods.
Sales Returns
Goods returned by buyers after sale due to defects, dissatisfaction, or other reasons, which are deducted from total sales revenue.
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