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:

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Sales returns represent merchandise returned by customers due to defects, wrong shipments, or other reasons. Since Tom's Textiles shipped the wrong material, the customer refused to accept the order and would return it. As a result, Tom's Textiles would credit Accounts Receivable and debit Sales Returns.

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