When Beth purchased diabetic candy from a catalog retailer, she was sent orange- and lemon-flavored candy coated in dark chocolate. When she called to complain to the catalog retailer, she was told to keep the candy that was incorrectly sent to her, and that the company would immediately ship her the correct candy. This incorrectly sent candy would be listed as ________ on the operating statement for the catalog retailer.

Question

Quizplus · Accepted Answer

The incorrectly sent candy would be listed as an allowance on the operating statement, as it represents a reduction in revenue due to the error, and the customer was allowed to keep the product.

When Beth Purchased Diabetic Candy from a Catalog Retailer, She