Sales Returns and Allowances

Multiple Choice

Sales returns and allowances:

A) are not included on most externally reported income statements.
B) are offered as a way to encourage customers to make prompt payment.
C) would include terms "2/15,n/60" which allows the customer to take a 15% discount if paid in 2 days.
D) are included on external financial statements to allow investors to compare the company's results with industry standards.