Sales Returns and Allowances Are Reported on The

question 138

Multiple Choice

Sales Returns and Allowances are reported on the:

• A) income statements as a contra-revenue account
• B) balance sheet as a contra-inventory account
• C) income statement as a reduction to Cost of Goods Sold
• D) balance sheet as a reduction to Gross Profit

---

Definitions:

Guthrie

Edwin Ray Guthrie, a behaviorist psychologist known for his "contiguity theory" which emphasized that learning occurs through association of stimuli occurring together in time.

Associated Response

A reaction that is commonly linked or connected to a specific trigger or set of conditions.

Secondary Reward

A reward that does not satisfy a biological need but is desirable due to its association with primary rewards or intrinsic satisfaction.

Tolman

A psychologist known for his work in cognitive behaviorism, particularly the concept of latent learning and the use of cognitive maps.