A company agrees to give a customer a credit for goods that are deemed unsatisfactory...
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Accounting
A company agrees to give a customer a credit for goods that are deemed unsatisfactory and returned. How is this reported on the company's financial statements?
a Gross sales are increased by the amount of the credt
b Gross sales are reduced by the amount of the credit
c Operating expenses are increased by the amount of the credit
d Accounts payable are increased by the amount of the credit
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