Find what the entry to record the return would include

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Problem 1: Current assets listed on the balance sheet include

A) Land.
B) Buildings.
C) Allowance for Doubtful Accounts.
D) Sales.

Problem 2: Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 13% HST. The invoice included HST at 13% and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the return would include

A) a debit to Sales Returns and Allowances for $141.25.
B) a debit to Sales Returns and Allowances for $125.00.
C) a credit to Sales Tax Payable for $16.25.
D) a debit to Accounts Receivable for $141.25.

Reference no: EM132910642

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