Gershwin Wallcovering Inc

question 78

Multiple Choice

Gershwin Wallcovering Inc.shipped the wrong shade of paint to a customer.The customer agreed to keep the paint upon being offered a 15% price reduction.Gershwin would record this reduction by crediting Accounts Receivable and debiting:

• A)Sales Revenue.
• B)Sales Discounts.
• C)Sales Returns.
• D)Sales Allowances.

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Definitions:

Price

The cost associated with acquiring a good, service, or asset.

Income Decreases

A situation where an individual's or household's earnings fall over a period, affecting their purchasing power and standard of living.

Choice Set

The collection of options or alternatives from which a decision-maker is able to choose in a decision-making process.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.