The Entry to Record a Return by a Credit Customer

question 39

Multiple Choice

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

• A) a debit to Sales and a credit to Accounts Receivable.
• B) a debit to Sales and a credit to Sales Returns and Allowances.
• C) a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
• D) a debit to Accounts Receivable and a credit to Sales Returns and Allowances.

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Definitions:

Descriptive Study

A research method focused on observing, describing, and documenting aspects of a situation as it naturally occurs, without intervention by the researcher.

Random Sample

A sample of participants that fairly represents the population because each member of the population had an equal chance of being included.

Convenience Sample

A sampling technique where participants are selected based on their easy accessibility and proximity to the researcher.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by controlling and varying variables.