Mack Industries uses the periodic 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; debit Merchandise Inventory for $100; credit Cost of Goods Sold for $100.
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 Cash for $100; credit Sales for $150.
D) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250.
Correct Answer:
Verified
Q31: Merchandise Inventory is a liability account.
Q32: Indicate the account(s) to be debited and
Q33: Under the _ inventory system, every sale
Q34: Indicate the account(s) to be debited and
Q35: In a periodic inventory system, Purchases, Freight-In,
Q37: Under the periodic inventory method, purchases are
Q38: Indicate the account(s) to be debited and
Q39: In a perpetual inventory system, Sales Returns
Q40: Under a perpetual inventory system, inventory purchases
Q41: Individual inventory items are tracked in the:
A)
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