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A Credit Granted to a Customer for Returned Goods Requires

Question 46

Multiple Choice

A credit granted to a customer for returned goods requires a debit to


A) Sales Revenue and a credit to Cash.
B) Sales Returns and Allowances and a credit to Accounts Receivable.
C) Accounts Receivable and a credit to a contra-revenue account.
D) Cash and a credit to Sales Returns and Allowances.

Correct Answer:

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