a-customer-returns-goods-worth-800-how-does-this-affect-the-companys-financial-s

Question

A customer returns goods worth $800. How does this affect the company's financial statements?

Accepted Answer

Revenue decreases by $$800, and accounts receivable decreases by 800.$$

Answer

Revenue decreases by $$800, and cash decreases by 800.$$

Answer

Revenue increases by $$800, and accounts receivable increases by 800.$$

Answer

Revenue increases by $$800, and cash increases by 800.$$

A customer returns goods worth \$800. How does this affect the company's financial statements?