Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 69

Big Brother, a retail store, purchased 100 television sets from Krueger Electronics on account at a cost of $200 each.rueger offers credit terms of 2/10, n/30.ig Brother uses a perpetual inventory system and records purchases at net cost.ig Brother determines that 10 of these television sets are defective and returns them to Krueger for full credit.n recording this return, Big Brother will:
a.ebit Sales Returns and Allowances, $1,960.
b.ebit Accounts Payable, $1,960.
c.ebit Cost of Goods Sold, $1,960.
d.redit Inventory, $2,000.