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What Is the Difference Between a Sales Return and a Sales

Question 132

Multiple Choice

What is the difference between a sales return and a sales allowance?


A) A sales return reduces the amount receivable from the customer, but an allowance does not.
B) A sales return involves an adjustment to Inventory, but a sales allowance does not.
C) A sales return requires a debit to Sales returns and allowances, but a sales allowance does not.
D) A sales allowance is deducted from Sales revenue to calculate net sales, but a sales return is not.

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