A Debit to Sales Returns and Allowances and a Credit

question 12

Multiple Choice

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 a decrease in amount due to a supplier.

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Definitions:

Matter of Law

Issues resolved by a judge, concerning the application or interpretation of the law, as opposed to matters of fact, which are decided by a jury.

Recross-examination

The questioning of a witness by the opposing side after re-examination, intended to clarify or counter information that came up during re-examination.

Redirect Examination

A stage in a court proceeding where the party who originally called a witness has an opportunity to question the witness again after cross-examination.

Adverse Party

An adverse party refers to a person or entity that stands in opposition in a legal dispute or litigation.