The Sales Returns and Allowances account is debited when:

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances account is debited when goods are returned by a customer. This account is used to record returns and refunds made by customers due to damaged or defective products, errors in billing or pricing, or other reasons. Debiting the Sales Returns and Allowances account reduces the amount of sales revenue earned by the company. Therefore, option B is the correct answer as it is the only one that describes a situation where a return would be made by a customer.

The Sales Returns and Allowances Account Is Debited When