To determine how much merchandise a company has returned to its vendors, it should review the:
A) Purchases Returns & Allowances account.
B) Change in the Inventory balance.
C) Sales Returns & Allowances account.
D) Sales Discounts account.

Question

Quizplus · Accepted Answer

The Purchases Returns & Allowances account specifically tracks the merchandise a company returns to its vendors, reflecting reductions in the cost of purchases due to returns or allowances granted by the vendor.

To Determine How Much Merchandise a Company Has Returned to Its