AC makes a sale on credit to DC. The total value of the sale is £10,000. Some of the £10,000 of goods delivered are damaged in transit. DC returns these damaged goods and asks for a credit to its account of £3,000. Which one of the following is the correct double entry to record the £3,000 reduction in sales in AC's books of account?
A) Debit sales £3,000, Credit bank £3,000
B) Debit sales £3,000, Credit trade receivables £3,000
C) Debit trade receivables £3,000, Credit sales £3,000
D) Debit sales £7,000, Credit trade receivables £7,000
Correct Answer:
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