BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

Reductions in the price of merchandise granted by the seller because of defects or other problems with the merchandise are called sales allowances.

To determine

Indicate whether the given statement is true or false.

Answer

The given statement is true.

Explanation

Sales allowance: The amount of reduction in sale price granted by the seller to the buyers for the goods returned due to defects or damages in the product, or incorrect sizes, is referred to as allowance granted by seller.

Description: Sometimes, customers either return goods due to manufacturing defects, or accept to keep the defective goods for a reduction in sale price. That amount of reduction in sale price, is referred to as sales allowances. Hence, the statement is true.

Conclusion

Thus, the given statement is true, in stating that the reduction in sale price of the defective merchandise is referred to as sales allowance.

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

What distinguishes a B2B from a B2C e-business model?

Foundations of Business (MindTap Course List)

What is the purpose of endorsing a check?

College Accounting (Book Only): A Career Approach

Discuss the following statement: A bonds yield to maturity is the bonds promised rate of return, which equals i...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Find all the answers to your study problems with bartleby.
Textbook solutions plus Q&A. Get As ASAP arrow_forward