A refund of the purchase price, increased warranty, or partial credit on the next purchase would be listed on the income statement as cost of goods sold.

Question

Quizplus · Accepted Answer

These items are not listed under cost of goods sold; they are typically considered as sales returns and allowances or as selling expenses, depending on their nature, and are accounted for separately from the cost of goods sold on the income statement.

A Refund of the Purchase Price, Increased Warranty, or Partial