A credit memorandum for $156 ( sales price of merchandise was $150; sales tax was $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly, for how much the Account Receivable wuold be credited?
Thank you

The receivable is the entire $156. That's how much was in there that the customer owed, $150 for merchandise and $6 for taxes. Since they no longer owe any of it (they won't owe the tax if they return it), then all $156 gets taken out.

Then the $6 also needs removed from the Sales Tax Payable, and the $150 should go into the Returns accounts.

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