On December 2,a Customer Returned Merchandise,with a Selling Price of $1,400

question 133

Multiple Choice

On December 2,a customer returned merchandise,with a selling price of $1,400 purchased on account,to a department store.Ignoring cost of goods sold,which journal entry should the department store prepare? Assume no discounts were offered.

• A)Debit Sales Revenue for $1,400 and credit Accounts Receivable for $1,400.
• B)Debit Sales Revenue for $1,400 and credit Cash for $1,400.
• C)Debit Sales Revenue for $1,400 and credit Sales Refunds Payable for $1,400.
• D)Debit Sales Refunds Payable for $1,400 and credit Accounts Receivable for $1,400.

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