Returned merchandise paid for within the discount period for a Cash refund.This will be recorded with:

Question

Quizplus · Accepted Answer

When a customer returns merchandise and receives a cash refund within the discount period, the transaction would be recorded with a debit to the asset account "Cash" to decrease it as cash is being given back, and a credit to the asset account "Accounts Receivable" to increase it as the amount owed by the customer is now being returned. Therefore, the correct choice is a debit to an asset.

Returned Merchandise Paid for Within the Discount Period for a Cash