Internal Controls for Handling Sales Returns and Allowances Do Not

question 88

Multiple Choice

Internal controls for handling sales returns and allowances do not include

• A)computing bad debt expense using the percentage of credit sales
• B)verifying that the goods have been returned
• C)authorizing the credit memo by management
• D)using the original sales invoice to prepare the sales returns slip

---

Definitions:

Homestead Act

Legislation passed in 1862 in the United States that granted 160 acres of public land to settlers for a small fee, provided they improve the land by building a dwelling and cultivating crops.

Founding Father

A member of the group of leaders who established the foundation of a nation, state, or political platform, often referred to in the context of the United States.

Collective Violence

Acts of violence committed by groups of individuals, ranging from spontaneous acts of public violence to organized acts by larger groups against others.

Frontier Regions

Areas located at the edge of a nation's settled regions, often characterized by their sparse population, rugged geography, and intercultural contact or conflict.