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Under the Perpetual Inventory System,what Is the Difference Between a Sales

Question 114

Multiple Choice

Under the perpetual inventory system,what is the difference between a sales return and a sales allowance?


A) A sales return reduces the amount receivable from the customer,but a sales allowance does not.
B) A sales return involves an adjustment to Merchandise Inventory,but a sales allowance does not.
C) A sales return requires a debit to Sales Returns and Allowances,but a sales allowance does not.
D) A sales return is not deducted from sales revenue to calculate net sales,but a sales allowance is deducted from sales revenue.

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