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Zhang Corporation Returned $6000 of Defective Goods to Meli Inc

Question 98

Multiple Choice

Zhang Corporation returned $6000 of defective goods to Meli Inc.Meli has a strict policy of no cash refund.Meli should


A) write off the account receivable.
B) issue a credit memo to Zhang.
C) wait until Zhang places its next order to record the return.
D) not adjust their accounting records since $6000 is not material for Meli.

Correct Answer:

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