Question 28 (1 point) When a sales return or a sales allowance is being recorded, why is it preferable to debit the Sales Returns and Allowances account instead of the Sales account? Because all firms use a Sales Returns and Allowances Journal. Because the Sales Returns and Allowances account does not appear on the Income Statement. Because this simplifies the journal entry recording process. Because this procedure gives a complete record of sales returns and allowances for each accounting period.
Added by Stephen C.
Close
Step 1
If we directly debit the Sales account, it would decrease the total sales, which might give an inaccurate picture of the total sales made. Secondly, by debiting the Sales Returns and Allowances account, we are able to keep a separate record of the sales returns Show more…
Show all steps
Your feedback will help us improve your experience
Matthew Wagner and 85 other Financial Algebra educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
What are two methods of recording accounts receivable transactions when a cash discount situation is involved? Which is more theoretically correct? Which is used in practice more of the time? Why?
Which of the following accounts are used when recording the sales entry of a sale on credit? A. merchandise inventory, cash B. accounts receivable, merchandise inventory C. accounts receivable, sales D. sales, cost of goods sold
Merchandising Transactions
Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System
(a) Should accounting transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the ledger?
Basques L.
Recommended Textbooks
Mathematics for Finance An Introduction to Financial Engineering
Universe: Solar System, Stars, and Galaxies
The Mathematics of Financial Derivatives: A Student Introduction
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD