Multiple Choice
Which of the following statements is not true about sales returns & allowances?
A) Sales returns and allowances can provide useful information about the quality of merchandise and the possibility of unsatisfied customers.
B) Sales returns and allowances are recorded in a separate contra-revenue account.
C) Sales returns and allowances are always disclosed in external financial statements.
D) Sales returns and allowance are closed to retained earnings at the end of the year.
Correct Answer:
Verified
Correct Answer:
Verified
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