In sales ledger control account; returns inwards is usually?

A. debited and debtors credited
B. credited and sales returns debited
C. debited and cash credited
D. credited and bank credited

Correct Answer:

Option B – credited and sales returns debited

Explanation

Remember sales ledger control accounts keeps count of all sales made on credit. If a customer returns goods that were sold on credit, we debit sales returns account and credit returns inwards