Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 32 - No. 35)
In a sales returns scenario, what is the effect on the seller's cost of goods sold (COGS)?
COGS increases.
COGS decreases.
COGS remains unchanged.
The effect depends on the condition of returned items.
Explanation
When a customer returns goods, the seller's inventory increases, effectively decreasing the COGS.
Comments (0)
