Accounting for IGCSE & O level - Accounting Procedures (Section 6 - No. 32)
Which of the following entries should be recorded in the sales ledger after a customer returns goods?
Debit the Sales Returns account.
Credit the Sales account.
Credit the customer's account.
Debit the customer's account.
Explanation
When a customer returns goods, the Sales Returns account is debited (to increase the returns) and the customer’s account is credited (because they are owed less money).
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