1. Assume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:
cash receipts journal.
accounts receivable ledger.
2. The matching principle requires:
that expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user.
the use of the direct write-off method for bad debts.
the use of the allowance method of accounting for bad debts.
that bad debts not be written off.
1 A sales return for credit on account would be recorded in the:
Sales returns occur when customers return defective, damaged inventory to the ...
A sales return for credit/matching principles are examined.