Under the Perpetual Inventory System,what Is the Difference Between a Sales

question 89

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 return is not deducted from sales revenue to calculate net sales,but sales allowance is added to sale revenue.

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Definitions:

Prior Art

All relevant technical knowledge about the field to which the invention belongs.

Technical Knowledge

Expertise or skills in specific fields, particularly those related to science, engineering, technology, or computing.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.