Ables Budget Boutique uses special journals. If a credit customer returns $40 of

Question

Ables Budget Boutique uses special journals. If a credit customer returns $40 of goods on which $3 of sales tax was charged, identify the statement below that would be correct when posting the transaction. A credit of $40 would be posted to the customer's account in the accounts receivable ledger. A debit of $43 would be posted to the customer's account in the accounts receivable ledger. A debit of $40 would be posted to the customer's account in the accounts receivable ledger. A credit of $43 would be posted to the customer's account in the accounts receivable ledger.

Explanation / Answer

ANSWER:

(D) A credit of $43 woudl be posted to the customer account in the accounts receivable ledger:

     Explanation: When goods are sold, customer account is to be debited in receivable ledger with $43 and credit will be given to Sales a/c $40 and Sales tax a/c $3. When customer return the goods, customer account will be credited with $43 in receivable ledger and Sales account and Sales tax accounts are to be debited with $40 and $3 respectively in General ledger.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.