Q27: Contra/set off entries appear on the:

Credit side of Purchase Ledger control account

Credit side of Sales account

Credit side of Sales Ledger control account

Debit side of Sales Ledger control account

Q28: Al Bajha Company grants a $ 400 allowance to a customer for damage resulting from improperly packed merchandise. If the customer has not yet paid the account, the required journal entry would be:

DEBIT Purchases $400 CREDIT Cash $400

DEBIT Sales return and allowances $400 CREDIT Accounts receivable $400

DEBIT Cash $400 CREDIT Sales $400

DEBIT Accounts receivable $ 400 CREDIT Sales return and allowances $400