The Entry to Record a Return by a Credit Customer

question 11

Multiple Choice

The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes

• A)a debit to Accounts Receivable and a credit to Sales Returns and Allowances.
• B)a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
• C)a debit to Sales and a credit to Sales Returns and Allowances.
• D)a debit to Sales and a credit to Accounts Receivable.

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Definitions:

Entrepreneurial Transition

The phase in which an entrepreneur moves the business from a startup to a more established company, often involving significant changes in its management and operations.

Structure

The arrangement or organization of components that make up an entity, such as a company or a molecule.

Ownership Structure

The configuration of the ownership rights and privileges among the various shareholders or stakeholders of a company.

Venture Capital

Financing provided by investors to startup companies and small businesses with perceived long-term growth potential.