The entry to record a sales return from a customer would require a(n)
A)decrease to Sales.
B)increase to Sales.
C)decrease to Sales Returns and Allowances.
D)increase to Sales Returns and Allowances.

Question

Quizplus · Accepted Answer

A sales return from a customer indicates that the customer has returned or canceled their purchase. This means that the sales previously recorded needs to be reversed or reduced. Therefore, a decrease in Sales Returns and Allowances account is required. Hence, the correct answer is D, i.e., increase to Sales Returns and Allowances.

The Entry to Record a Sales Return from a Customer