Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 4 - No. 39)
If a customer returns goods that were originally purchased on credit, how is this recorded in the accounting system?
Debit Sales Return, Credit Accounts Receivable
Debit Accounts Receivable, Credit Sales Return
Debit Inventory, Credit Sales
Debit Sales, Credit Accounts Receivable
Explanation
A sales return is recorded by debiting Sales Return and crediting Accounts Receivable, decreasing the amount owed by the customer.
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