Select the one term that best fits each definition
-Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer's account payable to the vendor.
A) board of directors
B) credit memorandum
C) debit memorandum
D) declaring a dividend
E) dividends
F) general journal
G) purchases allowance
H) purchases return
I) retained earnings
J) sales allowance
K) sales return

Question

Quizplus · Accepted Answer

Purchases allowance refers to a reduction in the cost of purchases due to issues such as defects or errors, without the need to return the merchandise, thus decreasing the amount the customer owes to the vendor.

Select the One Term That Best Fits Each Definition