Final answer:
A delayed credit due to an anticipated sales return is converted into an actual sales return or a refund once the return is physically received.
Step-by-step explanation:
If a delayed credit was created due to an anticipated sales return, it would be converted to a sales return or a refund after the return is received. In the accounting cycle, a delayed credit is recognized when a business anticipates that a customer may return goods. This anticipation creates a liability on the business's books. Once the actual sales return occurs, the liability is settled, and the delayed credit is converted into a sales return, typically affecting the sales returns and allowances account, which is a contra-revenue account that reduces the total revenues due to returned products.