Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a

A. debit to Sales Returns and Allowances for $132.50.

B. debit to Sales Returns and Allowances for $125.00.

C. credit to Sales Tax Payable for $7.50.

D. debit to Accounts Receivable for $132.50.

Question

Business

Aaron Terry

28 April, 07:56

Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include a

A. debit to Sales Returns and Allowances for $132.50.

B. debit to Sales Returns and Allowances for $125.00.

C. credit to Sales Tax Payable for $7.50.

D. debit to Accounts Receivable for $132.50.

+2

Answers (1)

Know the Answer?

Leland Carr · Answer 1

The right answer for the question that is being asked and shown above is that: " B. debit to Sales Returns and Allowances for $125.00. " Five necklaceswere returned prior to payment. The entry to record the return would include a B. debit to Sales Returns and Allowances for $125.00.