What Entry Format Is Appropriate If Sales Returns and Allowances $\begin{array}{cc}\text { Sales Returns and Allowances } & \mathrm{XX} \\\text { Receivable from Factor } & \mathrm{XX}\end{array}$

question 44

Multiple Choice

What entry format is appropriate if sales returns and allowances occur on factored accounts?

• A)
• \(\begin{array}{cc}
• \text { Sales Returns and Allowances } & \mathrm{XX} \\
• \text { Receivable from Factor } & \mathrm{XX}
• \end{array}\)
• B)
• \(\begin{array}{cc}
• \text { Receivable from Factor } & \text { XX } \\
• \text { Factoring Expense } & \text { XX }
• \end{array}\)
• C)
• \(\begin{array}{lc}
• \text { Sales Returns and Allowances } & \mathrm{XX} \\
• \text { Factoring Expense } & \mathrm{XX}
• \end{array}\)
• D)
• \(\begin{array}{cc}
• \text { Receivable from Factor } & \text { XX } \\
• \text { Accounts Receivable } & \text { XX }
• \end{array}\)

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