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Problem: By treating sales returns and allowances, sales discounts, and credit card discounts as contra-revenues, we have the following impact a. Gross margin is reduced by sales returns and allowances, sales discounts and credit card discounts b. Gross margin is increased by sales returns and allowances, sales discounts and credit card discounts c. Gross margin is unchanged by sales returns and allowances, sales discounts and credit card discounts d. None of the above is correct

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Problem Details

By treating sales returns and allowances, sales discounts, and credit card discounts as contra-revenues, we have the following impact

a. Gross margin is reduced by sales returns and allowances, sales discounts and credit card discounts

b. Gross margin is increased by sales returns and allowances, sales discounts and credit card discounts

c. Gross margin is unchanged by sales returns and allowances, sales discounts and credit card discounts

d. None of the above is correct

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