Time remaining:
If a credit memorandum is issued, which account will be increased on the seller’s books?

Accounting
Tutor: None Selected Time limit: 1 Day

If a credit memorandum is issued, which account will be increased on the seller’s books?
A. Accounts Receivable
   
B. Accounts Payable
   
C. Sales Discount
   
D. Sales Returns and Allowances
   

Apr 24th, 2015

D. This is a contra revenue account that will be deducted from sales when arriving at net sales on the sellers books. The other side of the entry is a reduction in accounts receivable.

Apr 24th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 24th, 2015
...
Apr 24th, 2015
Dec 10th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer