If management wanted to determine if customers were returning goods at a higher rate than usual,it could use the Sales Returns and Allowances account to analyze the information.

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances account tracks the amount of merchandise returned by customers and the related allowances given to customers, making it a useful tool for analyzing returns and determining if they are happening at a higher rate than usual.

If Management Wanted to Determine If Customers Were Returning Goods