Was the accountant method of recording returns acceptable


Response to the following problem:

During the year, sales returns and allowances totaled $235,750. The cost of the merchandise returned was $141,450. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $235,750.

Was the accountant's method of recording returns acceptable? Explain. In your explanation, include the advantages of using a sales returns and allowances account.

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Financial Accounting: Was the accountant method of recording returns acceptable
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