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    A sales return for credit/matching principle

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    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:

    sales journal.
    general journal.
    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.

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    Solution Preview

    1 A sales return for credit on account would be recorded in the:

    General journal

    Sales returns occur when customers return defective, damaged inventory to the ...

    Solution Summary

    A sales return for credit/matching principles are examined.

    $2.19

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