Question

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

Answer 1

Refer to the merchandise that customer return to the seller after the sale.

Step-by-step explanation:

Sales return is a option given by a seller to its customers to return the product purchased due to some other reasons. The sales returns are received by sellers and the invoice is then adjusted. The seller records the sales return under the account sales return and allowances. Customers usually return the products to sellers if they are not satisfied with either the quality or quantity.