=+EX 6-13 Sales-related transactions, including the use of credit cards obj. 3 294 Chapter 6 Accounting for Merchandising Businesses During the year, sales returns and allowances totaled $65,900. The cost of the merchandise returned was $40,000. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $65,900.

Was the accountant’s method of recording returns acceptable? Explain. In your explanation, include the advantages of using a sales returns and allowances account.