Which of the following correctly describes the effect of a journal entry involving the recording of a sales return?

A) Gross profit decreases.
B) Net sales increases.
C) Current assets remain the same.
D) Net income increases.

Sales Return

goods returned by the customers to the seller after the sale, reducing the gross sales figure.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Net Sales

The revenue a company earns from sales after subtracting returns, allowances for damaged or missing products, and discounts.