A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

A. Reflects an increase in amount due from a customer.
B. Records the cost side of a sales return.
C. Reflects a decrease in amount due to a supplier.
D. Is recorded when a customer takes a discount.
E. Recognizes that a customer returned merchandise and/or received an allowance.


Answer: E

Business

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