Was the accountants method of recording returns acceptable


During the year, sales returns and allowances totaled $172,100. The cost of the merchandise returned was $100,300. The accountant recorded all the returns and allowances by debiting the sales account and crediting Cost of Merchandise Sold for $172,100. 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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Cost Accounting: Was the accountants method of recording returns acceptable
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