When the Seller Accepts a Return of Goods from the Purchaser

question 82

Multiple Choice

When the seller accepts a return of goods from the purchaser originally sold on account, the seller's journal entry would include a debit to:

• A)Sales Discounts and credit to Cash.
• B)Sales Returns and Allowances and credit to Accounts Receivable.
• C)Sales Returns and Allowances and credit to Sales Discounts.
• D)Sales Revenue and credit to Cash.

---

Definitions:

Forced Indorsement

A signature placed on a negotiable instrument, such as a check, without the consent of the party whose name is signed.

Holder

An individual or entity that legally possesses a document, such as a check or promissory note, and has the right to enforce it.

Transfer Title

The legal process of transferring ownership of a property or asset from one party to another, typically involving a written document, such as a deed for real estate.

Death Of A Customer

Refers to the situation where a business loses a customer due to their passing away, which can have financial and operational impacts.