On December 2,a customer returned merchandise with a selling price of $500 purchased on account to a department store.Ignoring Cost of Goods Sold,what journal entry did the department store prepare?
A) Debit Sales Revenue for $500 and credit Accounts Receivable for $500.
B) Debit Sales Revenue for $500 and credit Cash for $500.
C) Debit Sales Revenue for $500,credit Sales Discount for $10,and credit Cash for $490.
D) Debit Sales Returns and Allowances for $500 and credit Accounts Receivable for $500.
Correct Answer:
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