What is normally recorded in the sales returns book?
Correct answer: A. Goods returned by credit customers
- A. Goods returned by credit customers
- B. Goods returned to credit suppliers
- C. Goods bought for immediate cash payment
- D. Assets sold for more than their book value
Explanation
The sales returns book records goods sent back by customers from earlier credit sales. Goods returned to suppliers are entered in the purchases returns book, not the sales returns book.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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