A Credit Granted to a Customer for Returned Goods Requires

question 46

Multiple Choice

A credit granted to a customer for returned goods requires a debit to

• A) Sales Revenue and a credit to Cash.
• B) Sales Returns and Allowances and a credit to Accounts Receivable.
• C) Accounts Receivable and a credit to a contra-revenue account.
• D) Cash and a credit to Sales Returns and Allowances.