Ace Electronics,which Uses a Perpetual Inventory System,recorded a Debit to Sales

question 89

Multiple Choice

Ace Electronics,which uses a perpetual inventory system,recorded a debit to Sales Returns & Allowances and a credit to Accounts Receivable,along with a debit to Inventory and a credit to Cost of Goods Sold.What business event must have taken place?

• A) The customer received a damaged product, but kept the product and asked for a reduction in the price.
• B) The customer received a damaged product and returned it.
• C) The customer received a discount because the invoice was paid on time.
• D) The customer sent in a partial payment and promised to pay the balance next month.

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Definitions:

Incremental Marketing Effort

Additional marketing activities that are undertaken to build upon the initial marketing strategy.

Marketing Effort

All the actions and tactics a business uses to market and sell its goods or services to its desired audience.

Sales Revenue

The total income generated from the sale of goods or services by a company before any costs or expenses are deducted.

Marketing Program

A marketing program encompasses the strategies, tactics, and activities designed to promote and sell products or services to target customers.