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These adjustments impact the company’s financial statements and require accurate record-keeping. Accurate accounting for returned merchandise is essential for financial reporting. When a customer returns a product, the business adjusts both sales and inventory accounts. Per Generally Accepted Accounting Principles…
Accountability within the company is guaranteed by transparent retained earnings financial processes, which make reporting regulations easier to comply with. Along with following GAAP principles, you want to consider things like using single vs double-entry bookkeeping. You also want to…