A credit memorandum for $156 (sales price of merchandise, $150; sales tax $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly,

Question

Quizplus · Accepted Answer

The credit memorandum is for the full amount of $156, which includes both the sales price of $150 and the sales tax of $6. Therefore, the Accounts Receivable account should be credited for the full amount of $156.

A Credit Memorandum for $156 (Sales Price of Merchandise, $150;