When customers return goods for cash refunds or, if the customer has not yet paid, for cancellation of the customer's obligation to pay, the firm records a sales
A)allowance.
B)return.
C)discount.
D)credit.
E)debit.

Question

Quizplus · Accepted Answer

When customers return goods for cash refunds or cancellation of their obligation to pay, it is considered a return. Therefore, the firm must record it as a return, which is the best fit from the options given. A sales allowance is a reduction in the selling price due to damaged or defective goods, while a discount is a reduction in the selling price for early payment or a larger volume of goods purchased. Credits and debits are used to record the increase or decrease in a financial account.

When Customers Return Goods for Cash Refunds Or, If the Customer