The return of goods by a customer should be debited to _________?

Correct option is C

When goods sold to a customer are returned, the business receives back the goods. This is known as Sales Return or Return Inward. According to the accounting rule, any return of goods from customers must be recorded by debiting the Return Inward Account, because it reduces the total sales. Correspondingly, the Customer’s Account is credited.
Thus, Return Inward Account is the correct account to be debited.
Information Booster
1. Return Inward is also known as Sales Return.
2. It reduces the net sales figure in the Trading Account.
3. It is shown on the debit side of the Trading Account.
4. The customer’s account is credited when goods are returned.
5. It helps in identifying genuine issues in quality, size, or delivery.