When a Customer Returns Merchandise Previously Purchased on Credit the Entry

question 80

Short Answer

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

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Implicit Cost

The opportunity cost equal to what a firm must give up or forgo in order to use resources in its own operations, not directly paid in money.

Part-Time Employees

Part-time employees are workers who are employed for fewer hours than the standard full-time work schedule, often without the same benefits as full-time employees.