timers distributing accepted returned merchandise purchased on account by serious sports for $400, plus…

timers distributing accepted returned merchandise purchased on account by serious sports for $400, plus sales tax of $32. the journal entry for timers distributing to record this transaction is: a. debit sales returns and allowances, $400, sales tax payable, $32; credit accounts receivable/serious sports, $432. b. debit accounts payable/serious sports, $432; credit purchases returns and allowances, $400, sales tax payable, $32. c. debit accounts receivable/serious sports, $432; credit sales returns and allowances, $400, sales tax payable, $32. d. debit sales returns and allowances, $400, sales tax payable, $32; credit accounts payable/serious sports, $432.

timers distributing accepted returned merchandise purchased on account by serious sports for $400, plus sales tax of $32. the journal entry for timers distributing to record this transaction is: a. debit sales returns and allowances, $400, sales tax payable, $32; credit accounts receivable/serious sports, $432. b. debit accounts payable/serious sports, $432; credit purchases returns and allowances, $400, sales tax payable, $32. c. debit accounts receivable/serious sports, $432; credit sales returns and allowances, $400, sales tax payable, $32. d. debit sales returns and allowances, $400, sales tax payable, $32; credit accounts payable/serious sports, $432.

Answer

Answer:

A. debit Sales Returns and Allowances, $400, Sales Tax Payable, $32; credit Accounts Receivable/Serious Sports, $432.

Explanation:

Step1: Identify the nature of transaction

Serious Sports returned merchandise bought on - account.

Step2: Analyze accounts affected

Sales Returns and Allowances is debited for the cost of returned goods ($400). Sales Tax Payable is debited as the related sales - tax liability is reduced ($32). Accounts Receivable is credited for the total amount owed back by Serious Sports ($400 + $32=$432).