. A debit to Sales Discount for P500 b. A credit to Sales Returns and Allowances for P500 c. A credit to Sales Discount for P500 d. A debit to Sales Returns and Allowances for P500
. A debit to Sales Discount for P500 b. A credit to Sales Returns and Allowances for P500 c. A credit to Sales Discount for P500 d. A debit to Sales Returns and Allowances for P500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You delivered a printing press to your customer. When it was delivered, it was slightly dented on one side, but the dent had no effect on the performance of the printing press. To maintain company goodwill , you authorized a P500 reduction in the invoice price if the customer would keep the printing press. The customer accepted the offer. The journal entry to record the P500 would include which of the following?
a. A debit to Sales Discount for P500
b. A credit to Sales Returns and Allowances for P500
c. A credit to Sales Discount for P500
d. A debit to Sales Returns and Allowances for P500
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