The Entry to Record a Sales Return from a Customer

question 58

Multiple Choice

The entry to record a sales return from a customer would require a(n)

• A)decrease to Sales.
• B)increase to Sales.
• C)decrease to Sales Returns and Allowances.
• D)increase to Sales Returns and Allowances.

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Definitions:

Adjusted Cash Balance

The cash balance reflected in the books after adjustments have been made for checks issued, deposits in transit, and other discrepancies.

Check Register

A record maintained by an account holder to keep track of checks written, deposits made, and current account balances.

Bank Statement

A document that summarizes all the transactions entered into by an account holder within a specific time frame.

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the check register but have not been cashed or cleared by the bank yet.