ACC 225 WEEK 5 DQ 2 - There would not be a debit to sales...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Week 5 Discussion Question 2 · Due Date: Day 4 [Main] forum · Post your response to the following: Read the BTN5-3 Ethics Challenge on p. 218 of the text. Discuss the ethics of what Amy is doing. Are there any consequences to her actions? How does the store account for Amy’s returns?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Assuming the co. didn't realise that the suit had been worn, and gives her the fullrefund, it would pass the following  entry: Dr Merchandise inventory (cost price) Cr COGS (cost price) Dr Sales (Selling price) Cr Cash/charge card refund (selling price)
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: There would not be a debit to sales. The debit would be to sales returns and allowances, a contra revenue account to sales. A debit to sales, for sales returns and allowances and sales discounts, would not be incorrect as far as the nature of debits and credits go, but, the sales account should be left alone. If there were frequent debits and credits posted to the account, a total sales figure would not be available. With the use of the contra accounts, the total sales is at all times accessible....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern