ABC Skiing Essentials uses special journals. If a credit customer returns $8,000 of goods on which $560 of sales tax was charged

ABC Skiing Essentials uses special journals. If a credit customer returns $8,000 of goods on which $560 of sales tax was charged, select the correct entry to record the return:

sales returns and allowances.....8,000
sales tax payable ............... 560
Accounts receivable .........8560 (A)

The Sales account is classified as a(n)

revenue account.

To indicate that the column totals of the sales journal have been posted, a check mark is entered under the column total.

False

Identify the statement below that correctly describes the Sales Returns and Allowances account.

It normally has a debit balance.

Hour Place Clock Shop sold a grandfather clock for $2,250 subject to a 9% sales tax. The entry in the sales journal will include a credit to Sales for

$2,250.00.

The Sales Returns and Allowances account has a normal debit balance.

True