In October 2006 Utland sold some goods on sale or return terms for $2,500. Their cost to Utland was $1,500. The
transaction has been treated as a credit sale in Utland’s financial statements for the year ended 31 October 2006. In
November 2006 the customer accepted half of the goods and returned the other half in good condition.
What adjustments, if any, should be made to the financial statements?
A Sales and receivables should be reduced by $2,500, and closing inventory increased by $1,500.
B Sales and receivables should be reduced by $1,250, and closing inventory increased by $750
C Sales and receivables should be reduced by $2,500, with no adjustment to closing inventory
D No adjustment is necessary
A | 
发表于 2008-4-25 22:14
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