One of Trent Company's Customers Returned Products That Had Been

question 126

Multiple Choice

One of Trent Company's customers returned products that had been sold on account for $800.Which of the following correctly describes the effect on the financial statements of the return?

• A)A contra-revenue account decreases $800.
• B)Accounts receivable decrease $800.
• C)Sales returns and allowances decrease $800.
• D)Net sales increase $800.

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Definitions:

Capsule

A protective outer covering of some organisms or the shell of a medication designed for swallowing.

Nuclear Pores

Large protein complexes that cross the nuclear envelope, serving as gateways that regulate the transport of molecules between the nucleus and cytoplasm.

Nucleoplasm

Semifluid medium of the nucleus, containing chromatin.

Cytoplasm

The jelly-like substance within a cell, excluding the nucleus, that contains organelles, enzymes, and the cytoskeleton, providing a site for most cellular processes.