Business, 26.03.2020 22:58 christinafish9303

Sales returns and allowances A) Represent a reduction of the customer's account receivable B) Provide information about dissatisfied customers and the possibility of lost future sales C) Are omitted from published statements D) Are usually recorded in separate contra-revenue accounts E) All of the above

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The correct options are (B). Provide information about dissatisfied customers and the possibility of lost future sales and (D). Are usually recorded in separate contra-revenue accounts.

From the foregoing the Account Receivable should be credited with the full amount of the original sales transactions not debited as provided in option "A." Represent a reduction of the customer's account receivable.

Explanation:

Sales Returns and Allowances is a contra-revenue account deducted from Sales. When customers return goods for one unsatisfied reason or the other, adjustments are made to the sales account. Likewise, deductions to the original selling price are made when the customer accepts defective products.

How to Record the Sales Return Transaction

The following under-listed steps are to be taken to make the appropriate entries:

Debit sales returns and allowances by the selling price. Debit the appropriate tax liability account by the taxes collected on the original sale. Credit cash or accounts receivable by the full amount of the original sales transaction.

Answer from: Quest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

Answer from: Quest

Ineed the options .

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Sales returns and allowances A) Represent a reduction of the customer's account receivable B) Provid...

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