A Debit to Sales Returns and Allowances and a Credit

question 99

Multiple Choice

A debit to Sales Returns and Allowances and a credit to Accounts Receivable

• A)Recognizes that a customer returned merchandise.
• B)Is not possible; it should be a credit to Sales Returns and Allowances and a debit to Accounts Receivable.
• C)Recognizes a cash discount taken by a customer.
• D)Requires a debit memorandum to recognize the customer's return.
• E)All of these answers are correct.

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Definitions:

Disease

A condition that impairs normal body function, caused by genetic, nutritional, environmental, or pathogenic factors.

Illness

A state of being in poor health or experiencing an ailment, disease, or sickness.

Psychological Disorders

Mental health conditions characterized by changes in thinking, mood, or behavior associated with distress or impaired functioning.

Sick Role Behavior

Those activities undertaken by people who have been diagnosed as sick that are directed at getting well.