Under the Perpetual Inventory System, What Is the Difference Between

question 11

Multiple Choice

Under the perpetual inventory system, what is the difference between a sales return and a sales allowance?

• A)A sales return reduces the amount receivable from the customer, but an allowance does not.
• B)A sales return involves an adjustment to Merchandise Inventory, but a sales allowance does not.
• C)A sales return requires a debit to Sales Returns and Allowances, but a sales 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:

Adolescence

The phase of both physical and psychological growth happening typically from the onset of puberty until reaching the age of legal maturity.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood which encompasses late teenage years and early twenties, often marked by exploration of identity.

Heteronomous Morality

A stage in child development where moral reasoning is based on external authorities and consequences rather than personal ethical principles.

Autonomous Morality

A stage in moral development where individuals recognize that rules and laws are created for the welfare of the population and can be questioned.