Which of the following does not correctly describe the following journal entry? Sales returns and allowances
Accounts receivable
A) Current assets decrease.
B) Gross profit decreases.
C)Net sales decreases.
D)Operating expenses increase.

Question

Which of the following does not correctly describe the following journal entry? Sales returns and allowances 
Accounts receivable
A) Current assets decrease.
B) Gross profit decreases.
C)Net sales decreases.
D)Operating expenses increase.

Quizplus · Accepted Answer

Sales returns and allowances reduce revenue, affecting net sales and gross profit, but they do not directly increase operating expenses.

Which of the Following Does Not Correctly Describe the Following