The Sales Returns and Allowances account can highlight possible issues for management's attention with respect to which of the following? possible inferior merchandise. the percentage of credit sales versus cash sales. inefficiencies in filling orders. errors in billing customers. A credit to a liability account is an error. indicates a decrease in the amount owed to creditors. must be accompanied by a debit to an asset account. indicates an increase in the amount owed to creditors. requires The double-entry accounting system you have learned about that each transaction must be recorded O in at least two different accounts. O in two sets of books. in a journal and in a ledger. first as a revenue and then as an expense. The account Allowance for Doubtful Accounts is necessary because when recording uncollectible accounts expense, it is not known which specific accounts will not pay. uncollectible accounts that are written off must be accumulated in a separate account. a liability results when a credit sale is made. management needs to accumulate all the credit losses over the years. Under the allowance method for uncollectible accounts, writing off an uncollectible account affects only balance sheet accounts. affects both balance sheet and statement of earnings accounts. affects only statement of earnings accounts. O is not acceptable practice. In a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory? Average cost Specific identification FIFO Need more information to