A Sales Returns and Allowances account is not debited if a customer
A)returns defective merchandise.
B)receives a credit for merchandise of inferior quality.
C)pays within the discount period.
D)returns goods that are not in accordance with specifications.

Question

Quizplus · Accepted Answer

The Sales Returns and Allowances account is debited when a customer returns goods or receives a credit for merchandise of inferior quality. However, if the customer pays within the discount period, there is no need to debit this account. If the customer returns defective merchandise or goods that are not in accordance with specifications, the Sales Returns and Allowances account should be debited.

A Sales Returns and Allowances Account Is Not Debited If