All of the following indicate a high level of risk associated with sales returns, EXCEPT:
A)There is a high volume of credit memo activity.
B)The company depends on a single customer or very few key customers.
C)Transactions may be recorded in the wrong amount.
D)Returns are received by consignees or under other arrangements not directly controlled by the company.

Question

Quizplus · Accepted Answer

While transactions being recorded in the wrong amount can lead to errors and inaccuracies, it doesn't necessarily indicate a high level of risk associated with sales returns. A high volume of credit memo activity, dependence on a single customer or key customers, and returns being received by consignees or under other arrangements not directly controlled by the company all pose significant risks and challenges for managing sales returns.

All of the Following Indicate a High Level of Risk