A company records a sales return from a credit customer. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues.

A company records a sales return from a credit customer. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues.



A) (1) Decrease, (2) Decrease, (3) Decrease

B) (1) Decrease, (2) No effect, (3) Decrease

C) (1) Decrease, (2) Decrease, (3) No effect

D) (1) No effect, (2) No effect, (3) No effect


Answer: (1) Decrease, (2) Decrease, (3) Decrease


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Accounting

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