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A Debit to Sales Returns and Allowances and a Credit

Question 92

Multiple Choice

A debit to Sales Returns and Allowances and a credit to Accounts Receivable


A) Is not possible; it should be a credit to Sales Returns and Allowances and a debit to Accounts Receivable
B) Recognizes that a customer returned merchandise
C) Requires a debit memorandum to recognize the customer's return
D) Recognizes a cash discount taken by a customer
E) All of the above

Correct Answer:

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