Multiple Choice
On a multiple-step income statement, what happens to the amount of sales returns and allowances?
A) It is subtracted from net sales to determine gross margin on sales.
B) It is subtracted from gross margin on sales to determine net sales.
C) It is added in the calculation of cost of goods sold.
D) It is subtracted from gross sales to determine net sales.
Correct Answer:
Verified
Correct Answer:
Verified
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