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

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


Answer: C

Business

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