What is the difference between the single-step and multiple step income statement formats?

1. Why would a company’s manager be concerned about the quantity of its purchase returns if its suppliers allow unlimited returns?

2. Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient’s account? What entry (debit or credit) does the recipient record?

3. What is the difference between the single-step and multiple step income statement formats?

4. Buyers negotiate purchase contracts with suppliers. What type of shipping terms should a buyer attempt to negotiate to minimize freight-in costs?