What Is the Difference Between a Sales Return and a Sales

question 73

Multiple Choice

What is the difference between a sales return and a sales allowance?

• A)A sales return involves an adjustment to Inventory,but a sales allowance does not.
• B)A sales return requires a debit to Sales returns and allowances,but a sales allowance does not.
• C)A sales return reduces the amount receivable from the customer,but an allowance does not.
• D)A sales allowance is deducted from Sales revenue to calculate net sales,but a sales return is not.

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Definitions:

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