Answer:
Sales return and allowances account would be debited and accounts receivable would be credited.
Explanation:
Given:
Sales return = $600
These goods were purchased on account.
At the time of sale, the company would have debited accounts receivable account and credited sales revenue.
When the goods sold to the customer are returned then the company decreases its sales and returns amount to the customer. Ignoring the cost of goods sold, the sales return entry would be the opposite of the entry passed at the time of sales. Sales return and allowances account would be debited and accounts receivable would be credited.
The journal entry for sales return has been attached below:
