GiGi's Sporting Goods uses special journals. If a credit customer returns $400 of goods on which
$24 of sales tax was charged, the journal entry to record the return would include:
A)a credit to the Sales Tax Payable account for $24.
B)a debit to the Sales Returns and Allowances account for $424.
C)a credit to the Accounts Receivable account for $424.
D)a debit to the Sales account for $400.

Question

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The Answer of GiGi's Sporting Goods uses special journals. If a credit customer returns $400 of goods on which
$24 of sales tax was charged, the journal entry to record the return would include:
A)a credit to the Sales Tax Payable account for $24.
B)a debit to the Sales Returns and Allowances account for $424.
C)a credit to the Accounts Receivable account for $424.
D)a debit to the Sales account for $400.

GiGi's Sporting Goods Uses Special Journals