Asked by
Pranav Kurapati
on Dec 16, 2024
Verified
When goods are returned that relate to a prior cash sale
A) the Sales Returns and Allowances account should not be used.
B) the cash account will be credited.
C) Sales Returns and Allowances will be credited.
D) Accounts Receivable will be credited.
Sales Returns
Goods returned by customers to the seller after the sale, often due to defects, not meeting the buyer's needs or other reasons.
Cash Sale
A transaction in which goods or services are paid for and received at the time of sale, using cash or its equivalents.
- Discern the variances among several account types (asset, contra asset, revenue, contra revenue) and their contributions to the accounting process for sales transactions.
- Execute the knowledge pertaining to the recording of sales revenue, noting the influence of transactions made with cash and credit.
Verified Answer
AM
Learning Objectives
- Discern the variances among several account types (asset, contra asset, revenue, contra revenue) and their contributions to the accounting process for sales transactions.
- Execute the knowledge pertaining to the recording of sales revenue, noting the influence of transactions made with cash and credit.