Chapter 4, Problem 8BTN

To determine

Sales Return and Allowances:

It is the goods which are sent back by the buyer to the seller usually due to defective goods, late delivery of goods, wrong goods shipped.

Merchandising Activities:

Merchandising activities are those activities in which dealing in sale of products to a retail buyer is made.

To explain: Sales return policy of a retail shop, whether the sales policies are ever negotiated with customers, and inquire about whether a management perceives that customers are abusing return policy and the actions management takes to counter potential abuses