A Debit to Sales Returns and Allowances and a Credit

question 76

Multiple Choice

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

• A) Reflects an increase in amount due from a customer.
• B) Recognizes that a customer returned merchandise and/or received an allowance.
• C) Requires a debit memorandum to recognize the customer's return.
• D) Is recorded when a customer takes a discount.
• E) Reflects a decrease in amount due a supplier.

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Definitions:

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