Q3:

On Feb 15, Al Maha Company sold goods to Al Shams Company for $15,000 under credit terms of 2/15, n/45, FOB Shipping Point.

On Feb 17, Al Shams Company returned goods worth $1,500.

How will Al Maha Company record the transaction on Feb 15?

Debit Accounts Receivable $15,000; Credit Sales $15,000

Debit Accounts Payables $15,000; Credit Sales $15,000

Debit Accounts Payables $15,000; Credit Purchases $15,000

Debit Purchases $15,000; Credit Accounts Payables $15,000

How will Al Maha Company record the transaction on Feb 17?

Debit Accounts Receivables $1,500; Credit Returns Inwards $1,500

Debit Returns Inwards $1,500; Credit Accounts Receivables $1,500

Debit Returns Outwards $1,500; Credit Accounts Payables $1,500

Debit Returns Outwards $1,500; Credit Accounts Receivables $1,500