Question
One of Trent Company's customers returned products that had been sold on account for $800. Which of the following correctly describes the effect on the
One of Trent Company's customers returned products that had been sold on account for $800. Which of the following correctly describes the effect on the financial statements of the return?
| A contra-revenue account decreases $800. | ||
| Accounts receivable decrease $800. | ||
| Sales returns and allowances decrease $800. | ||
| Net sales increase $800. |
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Financial Accounting
Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner
10th Edition
0072316373, 978-0072316377
