Asked by MIRTEMUR SHAKIROV on Jul 12, 2024
Verified
If management wanted to determine if customers were returning goods at a higher rate than usual, it could use the Sales Discounts account to analyze the information.
Sales Discounts
A reduction in the price of goods or services sold, offered by the seller as an incentive for early payment or in bulk purchase scenarios.
Sales
The total revenue earned from the selling of goods or services, before any deductions are made.
- Understand the concepts and purposes of Sales Returns and Allowances and Sales Discounts.
- Evaluate the impact of merchandise returns on financial statements.
Verified Answer
IS
Isaiah SorotenJul 15, 2024
Final Answer :
False
Explanation :
The Sales Discounts account typically tracks price reductions given to customers, not the return of goods. To analyze returns, management would use the Sales Returns and Allowances account.
Learning Objectives
- Understand the concepts and purposes of Sales Returns and Allowances and Sales Discounts.
- Evaluate the impact of merchandise returns on financial statements.
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