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:

Pupil

The circular opening in the center of the iris of the eye, which regulates the amount of light that enters.

Lens

A transparent optical component that focuses or disperses light rays, used in a variety of devices such as glasses, cameras, and microscopes to enhance vision or capture images.

Opponent-Process Cell

A type of cell in the visual system that is believed to be responsible for processing colors by encoding differences between pairs of colors such as red-green or blue-yellow.

Thalamus

A large, dual-lobed mass of grey matter buried under the cerebral cortex, involved in relaying sensory information and acting as a center for pain perception.