1.) If the customer has the right to return merchandise the Sale Returns and Allowances should be recorded _________.

A. the same period that the return occurred. B. the same period that the cash is received. C. The same period as the sale occurred. D. whenever the company wishes to record it. E. None of the above

2.) The Sales Return account is what type of account? A. Revenue B. Liability C. Contra-Asset D. Contra-Liability E. Contra-Revenue F. Inventory

3.) A. when the return period has expired. B. in the same period that the cash is received. C. in the same period as the sale occurred. D. whenever the company wishes to reverse it. E. None of the above