Customers return $550 of goods in excellent condition to the company.
A)debited (Dr)
B)Bedited (Cr)
C)Ceither (N)

Name: Customers return $550 of goods in excellent condition to the company. A)debited (Dr) B)Bedited (Cr) C)Ceither (N)
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

When customers return goods, the company needs to reverse the revenue or sales recorded from the original sale. This is done by debiting (Dr) the sales returns and allowances account, which decreases the total sales revenue.

Customers Return $550 of Goods in Excellent Condition to the Company