When a Customer Returns Merchandise Previously Purchased on Credit, the Entry

question 229

Short Answer

When a customer returns merchandise previously purchased on credit, the entry the seller makes to record the return requires a debit to the ________________ account and a credit to the ________________ account.

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Definitions:

Drawee's Payment

Involves the party, usually a bank, upon which a check or draft is drawn, making the payment as specified to the payee or bearer.

Indorses

Indorses refers to the act of signing the back of a negotiable instrument, like a check, thereby transferring the title or the rights to another party.

Discount Mart

A retail store offering goods at lower prices by typically operating with lower overhead or offering goods in bulk.

Counterfeit Goods

Illegal replicas or imitations of legitimate products intended to deceive consumers.