To determine how much merchandise was returned from a company's customers,the company should review the:
A)Purchases Returns and Allowances Account.
B)Merchandise Inventory Account.
C)Sales Returns and Allowances Account.
D)Freight-In.

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances Account records the amount of merchandise returned by customers for cash or credit. It is the most appropriate account to review to determine the amount of merchandise returned from customers. The Purchases Returns and Allowances Account and Merchandise Inventory Account relate to returned merchandise from suppliers and do not reflect returns from customers. Freight-In is a cost associated with acquiring inventory and does not relate to merchandise returns.

To Determine How Much Merchandise Was Returned from a Company's