A Debit to Sales Returns and Allowances and a Credit

Multiple Choice

A debit to Sales Returns and Allowances and a credit to Accounts Receivable:

A) Reflects an increase in amount due from a customer.
B) Recognizes that a customer has returned merchandise and/or received an allowance.
C) Requires a debit memorandum to recognize the customer's return.
D) Is recorded when a customer takes a discount.
E) Reflects a decrease in amount due to a supplier.