Jones Company, a Customer, Has Been Authorized to Return $1,000 $\begin{array}{cc}\text { Sales Returns and Allowances } & 1,000 \\\text { Accounts Receivable } & 1,000\end{array}$

Jones Company, a customer, has been authorized to return $1,000 of goods purchased on account. The journal entry to record this transaction is

A)
$\begin{array}{cc}\text { Sales Returns and Allowances } & 1,000 \\\text { Accounts Receivable } & 1,000\end{array}$
B)
Sales $\quad 1,000$
Sales Returns and Allowances $\quad 1,000$
C)
$\begin{array}{lr}\text { Sales Returns and Allowances } & 1,000 \\\text { Inventory } & 1,000\end{array}$
D)
$\begin{array}{lll}\text { Accounts Receivable } & 1,000 & \\\text { Sales Returns and Allowances }\end{array} 1,000$

Correct Answer:

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