Sales Returns and Allowances is increased when

A) an employee does a good job.
B) goods are sold on credit.
C) goods that were sold on credit are returned.
D) customers refuse to pay their accounts.

Sales Returns

Transactions where customers return previously purchased merchandise for a refund, replacement, or credit toward future purchases.

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.

Contra-Revenue

An account that offsets revenue accounts on the income statement, typically related to returns, allowances, and discounts.