ACC 291T Week 1 Discussion | eBooks | Education

ACC 291T Week 1 Discussion

ACC 291T Week 1 Discussion PLDZ-10318
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ACC 291T Week 1 Discussion

 

Review the Discussion FAQs Module.

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Review the Discussion FAQs Module.

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Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account.

You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. What would you do, and how would you document your decision?

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