A characteristic of Sales Returns and Allowances is that:
A) it has a debit balance.
B) it tracks returns from customers.
C) it is a contra-revenue account.
D) All of these answers are correct.
Answer: D
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Rotter Garder Inc. is a large-scale paint manufacturer known for its wide range of decorative paint products and industrial coatings. In addition to making paints, the company also owns and operates the retail stores that sell its products. This is an example of a(n) ________ vertical marketing system.
A) administered B) contractual C) referent D) corporate E) regulated
Which of the data provided in the table is a sunk cost?
Indium Services, Inc., is considering replacing a machine. The following data are available: Replacement Old Machine Machine Original cost $630,000 $490,000 Useful life in years 10 5 Current age in years 5 0 Book value $350,000 — Disposal value now $112,000 — Disposal value in 5 years 0 0 Annual cash operating costs $98,000 $56,000 A) the annual cash operating costs of the old machine B) the annual cash operating costs of the replacement machine C) the disposal value of the old machine D) the original cost of the old machine