Lesson 10

Lesson 10 - Name Jay Patadia Enrollment Number 688430...

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Name: Jay Patadia Enrollment Number: 688430 Course Number: ACCT 3222Z Lesson 10 10.6 What are the two major controls for sales returns and allowances transactions? Two important controls for processing of credit memoranda for sales returns and allowances transactions are: (1) each credit memorandum should be approved by someone other than the individual who initiated it and (2) a credit for returned goods should be supported by a receiving document indicating that the goods have been returned. 10-10 Distinguish between positive and negative confirmations. Under what circumstances would positive confirmations be more appropriate than negative confirmations? A positive accounts receivable confirmation requests that the customer indicate whether or not it is in agreement with the amount due to the client stated in the confirmation. Thus, a response is required regardless of whether the customer believes that the amount is correct or incorrect. A negative confirmation requests that the customer respond only
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Lesson 10 - Name Jay Patadia Enrollment Number 688430...

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