41) The time a customer is granted to pay the bill is the discount period.

 

42) Sales tax collected by the seller increases the seller’s total revenue.

43) Terms of 3/10, n/30 means that a customer is allowed a 10% discount in 30 days.

 

44) Sales Returns and Allowances is a contra-asset.

 

45) Sales is a revenue account.

 

46) Sales Discounts is an expense account.

 

47) If a customer returns merchandise, the income for that period will be reduced.

48) The Sales Returns and Allowances account is contra-revenue.

 

49) Sales Tax Payable represents an asset on the books of the seller.

50) Sales Discounts and Sales Returns and Allowances are expense accounts.

 

 

 



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