httpsnewconnectmheducationcomflowconnecthtml Chapter 5 Quiz

> ??|?https://newconnect.mheducation.com/flow/connect.html Chapter 5 Quiz? A debit to Sales Returns and Allowances and a credit to Accounts Recevable 16 Multiple Choice Refects an increase in amount due from a customer Recognzes that a customer neurned merchandse andior received an allowance. Records the cost de of a sales return s recorded when a customer takes a ascount Refects a decrease in amoure due to a suppser O Type here to search

Solution

A debit to Sales Returns and Credit to accounts receivables

Recognizes that a customer returned merchandise and or received an allowance

hence, B

This entry is passed to cancel the effect of sales and hence, returns are debited when a customer returns a product and balance receivable from him is reduced bu crediting accounts receivables