The entry to record the granting of credit to a customer for a sales return is posted to
A) the accounts receivable subsidiary ledger only.
B) the general ledger only.
C) both the accounts receivable subsidiary ledger and the general ledger.
D) both the accounts payable subsidiary ledger and the general ledger.

Question

Quizplus · Accepted Answer

The granting of credit to a customer for a sales return affects both the accounts receivable subsidiary ledger and the general ledger. The accounts receivable subsidiary ledger is updated to reflect the new balance owed by the customer, while the general ledger is updated to record the transaction and its impact on the overall financial position of the company. Therefore, option C is the correct choice. The accounts payable subsidiary ledger and the general ledger are not relevant to this transaction as it pertains to sales returns and not purchases.

The Entry to Record the Granting of Credit to a Customer