Under a periodic inventory system, the entry to record the return of inventory sold on account for $250 with a cost of $185 would be recorded by the seller as a:
A)credit to Accounts Receivable for $250.
B)debit to Sales Returns and Allowances for $185.
C)credit to Sales Revenue for $250.
D)credit to Cost of Goods Sold for $185.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, the seller records the return of inventory sold on account by crediting Accounts Receivable for the sales price of $250, as this reduces the amount owed by the customer.

Under a Periodic Inventory System, the Entry to Record the Return