AC Makes a Sale on Credit to DC

question 28

Multiple Choice

AC makes a sale on credit to DC. The total value of the sale is £10,000. Some of the £10,000 of goods delivered are damaged in transit. DC returns these damaged goods and asks for a credit to its account of £3,000. Which one of the following is the correct double entry to record the £3,000 reduction in sales in AC's books of account?

• A) Debit sales £3,000, Credit bank £3,000
• B) Debit sales £3,000, Credit trade receivables £3,000
• C) Debit trade receivables £3,000, Credit sales £3,000
• D) Debit sales £7,000, Credit trade receivables £7,000

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Definitions:

Product Cluster

A collection of products grouped together because of similar characteristics or because they target a similar market segment.

Specialty

A particular area of expertise or focus within a larger field of knowledge, work, or study.

Gourmet Chocolates

High-quality chocolates that are often handmade and use premium ingredients, catering to a niche market.

Convenience

The state of being able to proceed with something with little effort or difficulty, often related to products, services, or processes that save time and reduce effort for consumers.