Goods returned by customer should be debited to which of the following accounts? A. Sales income account B. Sales account C. Return inward account D. Expenses account

The correct answer is C. Return inward account.

A return inward account is a type of account used to record the return of goods by customers. When a customer returns goods, the seller must credit the customer’s account and debit the return inward account. This will reduce the amount of sales revenue that the seller reports for the period.

The other options are incorrect because:

• A sales income account is used to record sales revenue.
• A sales account is used to record both sales revenue and sales returns.
• An expenses account is used to record expenses incurred in the course of business.

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