Question

Under sales or return on approval basis, when the transactions are few and the customer accepts the goods on approval or return basis, the accounting treatment will be __________________.

• A. No Journal Entry
• B. Entry in Sales or Return Journal
• C. Entry in Sales or Return Day Book
• D. Sundry Debtors A/c Dr.
  To Sales A/c

Answer 1

Answer: (A)

No Journal Entry

No Entry is made, as it has been already recorded as sales when the goods were sent to customer.