One of Trent Company's customers returned products that had been sold on account for $800.Which of the following correctly describes the effect on the financial statements of the return?
A)A contra-revenue account decreases $800.
B)Accounts receivable decrease $800.
C)Sales returns and allowances decrease $800.
D)Net sales increase $800.

Question

Quizplus · Accepted Answer

When a customer returns products, the accounts receivable decreases by the amount of the return, which is $800 in this case.

One of Trent Company's Customers Returned Products That Had Been