Which of the Following Would Be Part of the Entry

question 24

Multiple Choice

Which of the following would be part of the entry to record a sales return?

• A)Credit to sales returns and allowances
• B)Debit to accounts receivable
• C)Debit to sales returns and allowances
• D)Debit to cash

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Definitions:

Agency Relationships

Refers to the connection between principals (such as shareholders) and agents (such as company executives), where agents are expected to act in the best interests of principals.

Owner/Managers

Individuals who both own and actively manage a company, blending ownership and operational responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly rights to dividends and voting in company matters.

Weighted Average

A calculation that takes into account the varying weights or importance of different elements in a data set.