All of the Following Statements Regarding Sales Returns and Allowances

Multiple Choice

All of the following statements regarding sales returns and allowances are true except:

A) New revenue recognition rules require sellers to report sales net of expected returns and allowances for annual periods.
B) The Inventory Returns Estimated account is a current liability account.
C) Sales returns and allowances estimates are typically made as period-end adjustments.
D) When sales returns and allowances adjustments are made to sales,an estimate must also be made for the cost side.
E) Sales Refund Payable is a current liability account.