Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 36 - No. 21)
In the context of credit sales, what happens to a customer's trade receivable account when a return is processed?
It increases.
It decreases.
It remains the same.
It is closed.
Explanation
When goods sold on credit are returned, the customer owes less; thus, the trade receivable account decreases.
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