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    Financial Accounting Study Set 31
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    Exam 5: Accounting for Merchandising Operations
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    If a Customer Agrees to Retain Merchandise That Is Defective
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If a Customer Agrees to Retain Merchandise That Is Defective

Question 170

Question 170

Multiple Choice

If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a sales


A) discount.
B) return.
C) contra asset.
D) allowance.

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