Posted On: 02/12/2016 10:29:11 PM
Post# of 8802
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Re: thurg00d420 #1610
Yes!!! Love your thinking dude!!! Thats how I see it as well. Also included in that g/a number are commissions. Just thought about it.. when sales are recognized as revenue, commissions for some employees are also recognized and included in g/a exp. But when inventory is returned it affects revenue through returns/allowances and should also affect the commission of the salesperson snd should be offset against g/a reducing that account which basically has a zero net affect, a wash transaction..hopefully they were applying this method, if not g/a exp could have been highly overstated cutting jnto net earnings.
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