A wholesale customer returned merchandise having already paid for it within the cash discount period. The return will be recorded with:

A) a credit to an asset account.
B) a credit to a liability account.
C) a credit to Capital.
D) None of these is correct.

Cash Discount Period

A specific time frame during which a buyer can pay less than the full amount due by taking advantage of a discount offered.

Liability Account

A financial accounting term for amounts owed by a business to creditors or others, usually categorized as current or long-term.

Asset Account

An account that records the value of resources owned by an entity which have economic value and can provide future benefits.