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Review the following journal entry and provide the most likely explanation of what is happening to require this journal entry to be recorded: Sales Returns

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Review the following journal entry and provide the most likely explanation of what is happening to require this journal entry to be recorded: Sales Returns and Allowances $500 Accounts Receivable $500 The company is reversing an original customer sale because the customer returned the items they purchased from the company The company is unhappy with the inventory purchased and it is returning it to their vendor. The company made a sale to a customer on account

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