When a buyer returns merchandise that has been previously purchased, there is a(n):
A) decrease net income.
B) decrease in assets.
C) increase accounts payable.
D) Not enough information provided.

Question

Quizplus · Accepted Answer

When a buyer returns merchandise, the business issuing the refund will experience a decrease in assets, typically cash or accounts receivable, reflecting the outflow of resources to settle the refund.

When a Buyer Returns Merchandise That Has Been Previously Purchased