Question

SAVE HOMEWORK Revenue Cycle Activities >> Q-7-2. Receive Goods on a Sales Return Which of the following statements is true concerning the process of recording a sales return? Please add checkmark next to the correct answers). 1 The accounts receivable subsidiary records are updated at the time the Sales Transaction Entry Window is posted. 2 The credit to accounts receivable is recorded at the time the Sales Transaction Entry Window is posted. 3 The Sales Transaction Entry Window is used to apply the sales return to a specific invoice or invoices. 4 The Apply Sales Document Window is used to post the sales return to the General Ledger. 5 None of the above statements are true.

Answer 1

Option 2 is correct answer,

At the time of sales the was

Customer account (debtor) xxxxx

To sales account(credit) xxxxx

Customer account is updated in accounts receivable ledger(In account receivable ledger the sales account is debited to accounts receivable)

At the time sales return the entry is reversed

Sales return account (debtor) xxxxx

To customer account (credit) xxxxx

In Accounts receivable ledger the sales return is credited, and the customer balance is reduced

Basically accounts receivable and accounts payable are subsidary books, it is a reconciliation account.

In balance sheet we are create accounts receivable the customer consolidated balance is updated in the accounts receivable accojnt