Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 43 - No. 21)
What journal entry is recorded when a customer returns goods purchased on credit?
Debit Sales Revenue, Credit Cash
Debit Accounts Receivable, Credit Sales Revenue
Debit Sales Returns, Credit Accounts Receivable
Debit Cash, Credit Sales Returns
Explanation
When goods are returned, the seller debits sales returns and credits accounts receivable.
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