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Acme Enterprises,which Uses a Perpetual Inventory System,recorded a Debit to Sales

Question 26

Multiple Choice

Acme Enterprises,which uses a perpetual inventory system,recorded a debit to Sales Returns & Allowances and a credit to Accounts Receivable.(No other accounts were affected.) What business event must have taken place?


A) The customer received a damaged product, but kept the product and asked for a reduction in the price.
B) The customer received a damaged product and returned it.
C) The customer received a discount because the invoice was paid on time.
D) The customer sent in a partial payment and promised to pay the balance next month.

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