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.