A debit to Sales Returns and Allowances and a credit to Accounts Receivable:
A) Reflects an increase in amount due from a customer.
B) Recognizes that a customer returned merchandise and/or received an allowance.
C) Requires a debit memorandum to recognize the customer's return.
D) Is recorded when a customer takes a discount.
E) Reflects a decrease in amount due a supplier.

Question

Quizplus · Accepted Answer

A debit to Sales Returns and Allowances and a credit to Accounts Receivable recognizes that a customer has returned merchandise and/or received an allowance. This decreases the amount due from the customer, as they are no longer responsible for paying for the returned items.

A Debit to Sales Returns and Allowances and a Credit