nicky123

the receivables ledger control account at 1 May had balances of $32,750 debit and $1,275 credit. During May, sales of $125,000 were made on credit. Revenues from trade receivables amounted to $122,500 and cash discount of $550 were allowed. Refunds of $1,300 were made to customers. The closing balances at 31 May could be
A $35,175 debit and $3,000 credit
B $35,675 debit and $2,500 credit
C $36,725 debit and $2,000 credit
D $36,725 debit and $1000 credit
Could somebody help me solve this question? Actually, I have no ideas of it! By the way, I wanna know the accounting treatment for refunds to customers!
Thanks so much in advance!