When a Firm Is Purchasing Inventory,and There Are Either Returns

question 97

True/False

When a firm is purchasing inventory,and there are either returns or allowances for damaged goods,those amounts are recorded as a debit to the Sales returns and allowances account.

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Definitions:

Fixture

An item of personal property that has been attached to or closely associated with real property in such a way that it becomes legally part of the real property.

Attachment

In general, the process of taking a person’s property under an appropriate judicial order by an appropriate officer of the court. Used for a variety of purposes, including the acquisition of jurisdiction over the property seized and the securing ofproperty that may be used to satisfy a debt.

Intent

The state of mind directing actions towards a specific objective, significant in law, indicating the purpose behind an action.

Adaptation

The process of adjusting or modifying something or someone to make it suitable for a new use or purpose.