The entry to record the return of goods from a customer would include a
A)debit to Sales Revenue.
B)credit to Sales Revenue.
C)debit to Sales Returns and Allowances.
D)credit to Sales Returns and Allowances.

Question

Quizplus · Accepted Answer

The return of goods from a customer is recorded by debiting Sales Returns and Allowances, which is a contra-revenue account, to decrease total sales revenue.

The Entry to Record the Return of Goods from a Customer