Using a Contra-Revenue Account for Sales Returns and Allowances Instead

question 17

Multiple Choice

Using a contra-revenue account for sales returns and allowances instead of directly reducing the sales account allows a retailer the following advantage:

• A)Increase profits by using accounting methods.
• B)Track the value of goods returned.
• C)Create more work for the accounting department.
• D)Increase sales by bringing more products.

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Definitions:

Diet

The sum of food and drink that an individual habitually consumes, which can significantly impact health and well-being.

Wrinkling

The formation of creases, folds, or ridges on the skin, typically as a result of aging, skin damage, or dehydration.

Automatic

Operations or processes that require minimal conscious thought and effort, often due to learning or repetition.

Health Consequences

The outcome or impacts on a person's physical well-being resulting from certain behaviors, lifestyle choices, or environmental exposures.