A Refund Liability account is not debited if a customer
A)returns defective merchandise.
B)receives a credit for merchandise of inferior quality.
C)pays within the discount period.
D)returns goods that are not in accordance with specifications.

Question

Quizplus · Accepted Answer

A Refund Liability account is not debited when a customer pays within the discount period because this transaction does not involve a return or refund situation. Instead, it involves a reduction in the amount owed due to early payment.

A Refund Liability Account Is Not Debited If a Customer