One of Trent Company's Customers Returned Products That Had Been

Multiple Choice

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) A contra-revenue account decreases $800.
B) Accounts receivable decrease $800.
C) Sales returns and allowances decrease $800.
D) Net sales increase $800.