The Entry to Record a Return by a Credit Customer

question 39

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

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Definitions:

Dual Circuit Application Valve

A valve used in braking systems designed for redundancy, ensuring braking capability even if one circuit fails.

Automatic Slack Adjuster

A device in air brake systems that automatically adjusts the brakes as needed to maintain proper clearance between the brake shoes and drums.

Brake Free Stroke

The amount of movement or travel the brake pedal or lever undergoes before the brake mechanism starts to engage.

Friction Surfaces

Areas where two materials come into contact and movement between them is resisted by friction, important in braking systems and clutches.