Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns. Respond to the following in a minimum of 175 words: What would you do, and how would you document your decision?

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ekkarill92 answered 1 year ago

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Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. Respond to the following in a minimum of 175...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. What would you do, and how would you document...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...

Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. What would you do, and how would you document...

You have noticed that the A/R clerk has created an abnormally high number of credit memos....

You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. What would you do, and how would you document your decision?

You have noticed that the A/R clerk has created an abnormally high number of credit memos....

You have noticed that the A/R clerk has created an abnormally high number of credit memos. You notice the inventory does not reflect the additional inventory resulting from the Sales Returns and Allowances. What could be happening, and what will you do?

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