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)Records the cost side of a sales return.
D)Is recorded when a customer takes a discount.
E)Reflects a decrease in amount due to a supplier.

Question

Quizplus · Accepted Answer

A debit to Sales Returns and Allowances and a credit to Accounts Receivable recognizes that a customer returned merchandise and/or received an allowance. This transaction decreases the amount due from a customer. The other options listed are not relevant to this transaction.

A Debit to Sales Returns and Allowances and a Credit