A Sales Allowance Is Recorded with a Credit to Accounts

question 42

True/False

A sales allowance is recorded with a credit to Accounts Payable.

---

Definitions:

Debtor

A debtor is an individual or entity that owes money to another party, often a creditor, as a result of borrowing funds or failing to pay for goods or services.

Creditor

An entity or individual to whom money is owed by a debtor for goods sold, services rendered, or money loaned.

Bankruptcy Relief

Legal measures available under bankruptcy law that allow individuals or entities to discharge or reorganize their debt.

Federal Law

Laws created by the national government which apply throughout the country and override state laws where conflicts occur.