All of the Following Statements Regarding Sales Returns and Allowances

Multiple Choice

All of the following statements regarding sales returns and allowances are true except:

A) New revenue recognition rules require sellers to report sales net of expected returns and allowances for annual periods beginning after December 15, 2017.
B) The Inventory Returns Estimated account is updated each time a sale is made.
C) Sales returns and allowances estimates are typically made as period-end adjustments.
D) When sales returns and allowances adjustments are made to sales, an estimate must also be made for the cost side.
E) A credit memorandum is issued by the seller to inform a buyer of the seller's credit to the buyer's Accounts Receivable on the seller's books.