Sales Returns and Allowances

question 66

Multiple Choice

Sales returns and allowances

• A)are accounted for by deducting the total amount from gross sales.
• B)are accounted for by deducting the total amount from net sales.
• C)are accounted for using a contra account called Trade Discounts.
• D)are accounted for using a reduction account.
• E)are not accounted for on the financial statements.

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Definitions:

Minimum Wage

The lowest legal hourly pay for many workers, set by law or policy.

Secondary Labor Market

Employment sectors characterized by low pay, insecure job tenure, and poor working conditions.

Wage Rate

The fixed amount of compensation or payment a worker receives from the employer in exchange for labor or services, typically expressed per hour or year.

Productive Demand

The demand for goods and services that are needed to produce other goods and services.