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A customer returned merchandise that he had paid for within a discount period for credit. The entry was recorded with a debit to Sales Returns
A customer returned merchandise that he had paid for within a discount period for credit. The entry was recorded with a debit to Sales Returns and Allowances and a credit to Accounts Receivable for the net amount. This error would cause __________.
A. the period's end assets to be understated
B. the period's end liabilities to be understated
C. the period's net income to be understated
D. none of the above
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