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:

Economic Trends

Patterns or tendencies in the economy that indicate the direction of the overall economic activities and conditions.

Psychiatry

A branch of medicine focused on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Psychiatric Diagnoses

The process of identifying and categorizing mental health disorders based on symptomatology and clinical criteria.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that are both distressing and deviate from societal norms.