A customer returned merchandise that had been paid for within a discount period for credit.The entry was recorded with a debit to Sales Returns and Allowances and a credit to Accounts Receivable for the net amount.This error would cause:

Question

Quizplus · Accepted Answer

The entry correctly reflects the reduction in revenue and the corresponding decrease in accounts receivable, thus not affecting the period end assets, liabilities, or net income incorrectly.

A Customer Returned Merchandise That Had Been Paid for Within