The journal entry to record a sales return made by a customer would include:
A)A debit to Accounts Receivable and a credit to Sales Returns
B)A debit to Cash and Sales Returns
C)A debit to Sales Returns and a credit to Accounts Receivable
D)A debit to Accounts Receivable and a credit to Cash

Question

Quizplus · Accepted Answer

The journal entry to record a sales return made by a customer would involve reducing the amount owed by the customer (Accounts Receivable) and showing that a sale has been returned (Sales Returns). Therefore, a debit to Sales Returns and a credit to Accounts Receivable is the appropriate entry. Options A and D are incorrect because they involve Cash, which would only be affected if the customer received a refund instead of just returning the item. Option B is incorrect because it does not show the reduction in the amount owed by the customer.

The Journal Entry to Record a Sales Return Made by a Customer