Multiple Choice
Which of the following is a true statement for a company using a perpetual inventory system?
A) Purchase returns and allowances is a contra-account to revenue.
B) Sales returns and allowances is a contra-account to revenue.
C) Purchase returns and allowances is a contra-account to accounts receivable.
D) Sales returns and allowances is a contra-account to inventory.
Correct Answer:
Verified
Correct Answer:
Verified
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