delacom communications accepted returned merchandise purchased on account by wave com for $997, plus sales…

delacom communications accepted returned merchandise purchased on account by wave com for $997, plus sales tax of $62. the journal entry for delacom communications to record this transaction is: a. debit sales, $1,059; credit accounts receivable/wave com, $1,059. b. debit accounts receivable/wave com, $1,059; credit sales, $1,059. c. debit sales returns and allowances, $997, sales tax payable, $62; credit accounts receivable/wave com, $1,059. d. debit accounts receivable/wave com, $1,059; credit sales returns and allowances, $997, sales tax payable, $62.

delacom communications accepted returned merchandise purchased on account by wave com for $997, plus sales tax of $62. the journal entry for delacom communications to record this transaction is: a. debit sales, $1,059; credit accounts receivable/wave com, $1,059. b. debit accounts receivable/wave com, $1,059; credit sales, $1,059. c. debit sales returns and allowances, $997, sales tax payable, $62; credit accounts receivable/wave com, $1,059. d. debit accounts receivable/wave com, $1,059; credit sales returns and allowances, $997, sales tax payable, $62.

Answer

Brief Explanations:

When merchandise is returned, Sales Returns and Allowances (a contra - revenue account) is debited for the cost of the returned goods ($997), and Sales Tax Payable is debited for the sales tax amount ($62) that was collected but now needs to be reversed. Accounts Receivable is credited for the total amount due back to the customer ($997 + $62 = $1,059).

Answer:

C. debit Sales Returns and Allowances, $997, Sales Tax Payable, $62; credit Accounts Receivable/Wave Com, $1,059.