Suppose in 2015, DBP sold merchandise for $3,500,000 and, based on past experience, recorded a provision for sales returns of $75,000. In 2016, customers returned $50,000 worth of these goods sold to them in 2015. Indicate how this actual sales return transaction would affect DBP's (1) assets, (2) shareholders' equity, and (3) revenues in 2016.

Answer rating: 100% (QA)

1 Assets The actual return of 50000 worth of merchandise in 2016 would decrease the accounts receiva... View the full answer