Arya has a single product that is sold for $100 per unit, and payment is due after a credit period of one month. Any customer buying more than 80 units receives a 5% discount. Roy bought 100 units, then returned 10 units two weeks later. How should Arya record the sales returns?
- ADebit: sales returns $950; Credit: bank $950
- BDebit: sales returns $1000; Credit: bank $1000
- CDebit: sales returns $950; Credit: trade receivables - Roy $950
- DDebit: sales returns $1000; Credit: trade receivables - Roy $1000