Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 26)
What happens to the balance of a customer's account in the sales ledger if the customer returns the goods that were sold to them on credit?
The balance increases.
The balance decreases.
The balance remains the same.
The balance is transferred to purchases ledger.
Explanation
Returns reduce what is owed by the customer, reducing the balance.
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