During the year, sales returns and allowances totaled $90,000. The cost of the merchandise returned was $54,000.
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During the year, sales returns and allowances totaled $90,000. The cost of the merchandise returned was $54,000. The accountant recorded all the returns and allowances by decreasing the sales account and decreasing Cost of Merchandise Sold for $90,000.
Was the accountant’s method of recording returns acceptable? Explain. In your explanation, include the advantages of using a sales returns and allowances account.
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It was acceptable to decrease Sales for the 90000 However using Sales Returns and All...View the full answer
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