Sales returns:
A) Refer to reductions in the selling price of merchandise sold to customers.
B) Represent trade discounts.
C) Are not recorded under the perpetual inventory system until the end of each accounting period.
D) Refer to merchandise that customers return to the seller after the sale.
E) Represent cash discounts.

Question

Quizplus · Accepted Answer

Sales returns refer to merchandise that customers return to the seller after the sale. The other choices are not accurate definitions of sales returns.

Sales Returns