Sales returns and allowances:
A)are not included on most externally reported income statements.
B)are offered as a way to encourage customers to make prompt payment.
C)would include terms "2/15,n/60" which allows the customer to take a 15% discount if paid in 2 days.
D)are included on external financial statements to allow investors to compare the company's results with industry standards.

Question

Quizplus · Accepted Answer

Sales returns and allowances are tracked internally to inform management decisions,this information is not generally included on external financial statements.Sales discounts encourage customers to make prompt payment.

Sales Returns and Allowances