A debit to Sales Returns and Allowances and a credit to Accounts Receivable:
A)Reflects an increase in amount due from a customer.
B)Recognizes that a customer returned merchandise and/or received an allowance.
C)Requires a debit memorandum to recognize the customer's return.
D)Is recorded when a customer takes a discount.
E)Reflects an increase in net sales.

Question

Quizplus · Accepted Answer

A debit to Sales Returns and Allowances and a credit to Accounts Receivable recognizes that a customer returned merchandise and/or received an allowance. This transaction reduces both sales revenue and the amount owed by the customer.

A Debit to Sales Returns and Allowances and a Credit