Under the perpetual inventory system, what is the difference between a sales return and a sales allowance?

A) A sales return reduces the amount receivable from the customer, but a sales allowance does not.
B) A sales return involves an adjustment to Merchandise Inventory, but a sales allowance does not.
C) A sales return requires a debit to Sales Returns and Allowances, but a sales allowance does not.
D) A sales return is not deducted from sales revenue to calculate net sales, but a sales allowance is deducted from sales revenue.


B

Business

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