Dsirgash between sales rotm, and a sales allowance OA OB. inasales Nun hecompany

Question

Dsirgash between sales rotm, and a sales allowance OA OB. inasales Nun hecompany eeceives chardse back hom he customer and ettertialy careels he sai" Inasalee alorce, rehms M payment has been made In a sale ou ntring p tecompany rece es the metandse back fro n the customer and esserialy ofthe paymer·that has been made orredorgthe account receivable if sa osanag. oels he sale asales al incohe com any srpymace. sales prce to te ustrer by ether in a sales alowance, the 00mpay receives merchardse back from Piecustomer and essentaly earni. Pii" None of the above O D.

Explanation / Answer

Correct answer is - B . Because in sales return customer returned back the deffective , damanged or unsatisfactory goods to the seller and sales allowance company reduce the selling price either returning part of the payment that has been made or reducing the account receivable it still outstanding.

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