Gershwin Wallcovering Inc. shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offered a 15% price reduction 18) Gershwin would record this reduction by crediting Accounts Receivable and debiting A) Sales Discounts B) Sales Revenue C) Sales Returns D) Sales Allowances

D) Sales Allowances

Explanation:

The journal entry to record the reduction is shown below:

Sales allowance A/c Dr

            To Account receivable A/c

(Being the reduction is recorded)          

While recording the reduction, we debited the sales allowance and credited the account receivable so that the proper posting could be done

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number