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Recording Sales Returns
On March 5, Monica's Cooking Company sells inven-tory to a customer for $2,000. On March 13, the customer returns $750 of merchandise. The accountant recorded the return with the following entry:
March 13 Sales 750 Accounts Receivable 750Required
Prepare the entry the accountant should have made when the merchandise was returned on March 13 and explain why the accountant's entry was incorrect. Ignore any effect on cost of goods sold or inventory.
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