Which of the following would be part of the entry to record a sales return?
A)Credit to sales returns and allowances
B)Debit to accounts receivable
C)Debit to sales returns and allowances
D)Debit to cash

Question

Quizplus · Accepted Answer

When recording a sales return, the account Sales Returns and Allowances (contra-revenue) is credited to reduce the revenue earned from the original sale. The account receiving the debit depends on whether the customer is returning goods for cash or credit: if they receive cash, Cash is debited; if they are receiving a credit, Accounts Receivable is debited.

Which of the Following Would Be Part of the Entry