Which of the Following Statements Is Not Correct About Sales

Multiple Choice

Which of the following statements is not correct about sales returns and allowances?

A) Sales returns and allowances can provide useful information about the quality of inventory and the possibility of unsatisfied customers.
B) Sales returns and allowances are recorded in a separate contra-revenue account.
C) Sales returns and allowances are always disclosed in external financial statements.
D) Sales returns and allowance are subtracted to determine net sales.