In a Perpetual Inventory System,merchandise Returned by the Customer for a Refund

question 106

Multiple Choice

In a perpetual inventory system,merchandise returned by the customer for a refund is called a:

• A) sales return.
• B) sales allowance.
• C) sales discount.
• D) sales adjustment.

---

Definitions:

Large Companies

Businesses or organizations that operate on a large scale, often having extensive operations, personnel, and financial turnover.

Bad Debt

Money that has been lent or credited but is unlikely to be repaid and is therefore considered a loss.

Write-off

An accounting practice where the value of an asset is reduced to zero, reflecting its irrecoverability.

Write-down

An accounting term referring to the reduction in the book value of assets when their fair market value has fallen below the previously recorded cost.