A credit granted to a customer for returned goods requires a debit to

Name: A credit granted to a customer for returned goods requires a debit to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When a customer returns goods, the seller needs to adjust the original sales transaction. This is done by debiting (increasing) Sales Returns and Allowances, which is a contra-revenue account that reduces the total sales revenue, and crediting (decreasing) Accounts Receivable to reflect the reduction in the amount the customer owes.

A Credit Granted to a Customer for Returned Goods Requires