Mack Industries uses the perpetual inventory system. What is the entry to record $250 of returned merchandise, with a cost of $100, from customer Jake Sanders?
A) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250.
B) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Purchases for $100; credit Purchase Returns & Allowances for $100.
C) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Merchandise Inventory for $100; credit Cost of Goods Sold for $100.
D) Debit Sales Returns & Allowances for $250; credit Cash for $100, credit Sales for $150.
Correct Answer:
Verified
Q15: Under the perpetual inventory system, which of
Q16: Which of the following would be used
Q17: In a perpetual inventory system:
A) Merchandise Inventory
Q18: Sales Returns & Allowances is recorded on
Q19: A credit customer purchased $800 worth of
Q21: Indicate the account(s) to be debited and
Q22: Under the perpetual or periodic inventory system,
Q23: When using a periodic inventory system, a
Q24: Under the _ inventory system, cost of
Q25: Indicate the account(s) to be debited and
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