After Making a Sale,a Seller May Have Customers That Return

question 63

Multiple Choice

After making a sale,a seller may have customers that return goods.The seller uses the perpetual inventory system.This requires the seller to ________.

• A) use historical data to record sales revenue in the amount that is expected to be received
• B) record two adjusting entries to account for the estimated returns
• C) reduce sales and cost of goods sold for the period
• D) All of the statements are correct.

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Definitions:

Special Discounted Price

This is a temporary reduction in the selling price of goods or services, often used to attract customers or promote sales.

Segment Margin

The amount of profit or loss generated by one part of a business, after accounting for the direct and indirect costs of that segment.

Financial Advantage

The benefit gained in financial terms, which could be through savings, profits, or reduced costs.

Outside Supplier

An outside supplier is an external entity that provides goods or services to a company, not tied by corporate affiliation.