Sales returns A) Refer to merchandise that customers return to the seller after the sale B) Are related to purchase discounts C) Refer to reductions in the selling price of merchandise sold to customers D) Represent trade discounts E) Represent cash discounts

A) Refer to merchandise that customers return to the seller after the sale.

Explanation:

Option B is wrong because the sales return comes from customer selling while a purchase discount is given to the customer.

Option C is wrong because the sales discount can reduce the selling price of merchandise sold to customers.

Option D is wrong because the trade discount helps to the customer so that they can give less payment during purchase or sales.

Option E is wrong because the cash discount is given to customers to encourage early payment.

Option A is correct because when the customer returns the products to the seller after the sale is called sales returns.

d. the economy will face inflation.