Acme Enterprises,which Uses a Perpetual Inventory System,recorded a Debit to Sales

question 26

Multiple Choice

Acme Enterprises,which uses a perpetual inventory system,recorded a debit to Sales Returns & Allowances and a credit to Accounts Receivable.(No other accounts were affected.) 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:

Heterosexual Males

Men who are sexually attracted to individuals of the opposite sex.

Homosexual Males

Men who experience sexual attraction to other men.

Sexual Preference

An individual's pattern of sexual attraction to other people, often described in terms of the gender to which a person is attracted.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attraction to persons of the opposite sex, the same sex, or both sexes, and includes the identities of gay, lesbian, bisexual, and heterosexual.