The entry to record the return of goods from a customer would include a: Group of answer choices debit to Sales Revenue. credit to Sales Revenue. debit to Sales Returns and Allowances. credit to Sales Returns and Allowances.
Question
The entry to record the return of goods from a customer would include a: Group of answer choices
debit to Sales Revenue.
credit to Sales Revenue.
debit to Sales Returns and Allowances.
credit to Sales Returns and Allowances.
Solution
The entry to record the return of goods from a customer would include a:
Debit to Sales Returns and Allowances.
Here's how you can determine this:
Step 1: Understand the Transaction When a customer returns goods, it reduces the company's sales revenue. This is reflected in the accounting records by increasing (debiting) the Sales Returns and Allowances account.
Step 2: Record the Return When recording the return of goods from a customer, you would debit the Sales Returns and Allowances account. This increases the balance of this account, reflecting the reduction in sales revenue due to the returned goods.
So, the correct answer is a debit to Sales Returns and Allowances.
Similar Questions
When a seller records a return of goods purchased on credit, the account that is credited with the selling price of the goods returned is: Group of answer choices Sales Revenue. Sales Returns and Allowances. Inventory. Accounts Receivable.
The entry to record a purchase allowance granted on a credit memo includes a debit to which account in the general ledger?Multiple ChoiceCashAccounts PayablePurchases Returns and AllowancesPurchases Discounts
The sales returns and allowances account is an example ofGroup of answer choices
The journal entry to record a return of inventory purchased on account under a perpetual inventory system would credit: Group of answer choices Accounts Payable. Purchase Returns and Allowances. Sales Revenue. Inventory.
Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes:Multiple Choicea debit to Purchases and a credit to Accounts Payable.a debit to Accounts Payable and a credit to Purchases.a debit to Purchases and a credit to Accounts Receivable.a credit to Purchases and a credit to Accounts Payable.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.