Accountant method of recording returns

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Reference no: EM13143918

During the year, sales returns and allowances totaled $65,900. The cost of the merchandise returned was $40,000. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $65,900.

Was the accountant's method of recording returns acceptable? Explain.

Reference no: EM13143918

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