Sales Returns and Allowances is increased when
A) an employee does a good job.
B) goods are sold on credit.
C) goods that were sold on credit are returned.
D) customers refuse to pay their accounts.

Question

Quizplus · Accepted Answer

Sales Returns and Allowances is a contra account to Sales, which means it reduces the amount of revenue. It is increased when customers return goods that were sold on credit, resulting in a reduction of the original sale.

Sales Returns and Allowances Is Increased When