Tom's Textiles shipped the wrong material to a customer, who refused to accept the order. Upon receipt of the material, Tom's would credit accounts receivable and debit:

Question

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If a customer refuses to accept an order due to the wrong material being shipped, it is considered a sales return. Tom's Textiles would debit sales returns and credit accounts receivable to reflect the return of the merchandise. Sales discounts and sales allowances are generally used for resolving customer disputes or offering discounts to incentivize sales, which do not apply in this scenario.

Tom's Textiles Shipped the Wrong Material to a Customer, Who