A Debit to Sales Returns and Allowances and a Credit

question 205

Multiple Choice

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

• A)Reflects an increase in amount due from a customer.
• B)Recognizes that a customer returned merchandise and/or received an allowance.
• C)Records the cost side of a sales return.
• D)Is recorded when a customer takes a discount.
• E)Reflects a decrease in amount due to a supplier.

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Definitions:

Naïve Optimism

An overly positive and simple belief in the most favorable outcome of any situation without considering the complexities or potential challenges.

Tangible Benefits

Concrete advantages or gains, such as profit or improved health, which are directly attributable to a specific action or policy.

Technological Innovations

New inventions and improvements in existing technologies that can potentially change people's lives and society's structures.

Industrial Model

A representation or system that embodies the principles and practices of large-scale manufacturing and industrial production.