On October 1,Robertson Company sold inventory in the amount of $5,800 to Alberta,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the periodic inventory system.On October 4,Alberta returns some of the inventory.The selling price of the inventory is $500 and the cost of the inventory returned is $350.What journal entry (entries)will be recorded by Robertson October 4?
A)Debit Sales Revenue and credit Accounts Receivable for $500;debit Inventory and credit Cost of Goods Sold for $350
B)Debit Sales Revenue and credit Accounts Receivable for $500
C)Debit Accounts Receivable and credit Sales Revenue for $500
D)Debit Accounts Receivable and credit Sales Revenue for $500;debit Cost of Goods Sold and credit Inventory for $350

Question

Quizplus · Accepted Answer

When a periodic inventory system is in use,the entry to record a sales return includes a debit to Sales Revenue (or Sales Returns & Allowances)and a credit to Accounts Receivable.Unlike a perpetual inventory system,a periodic system does not track the cost of goods sold during the accounting period.

On October 1,Robertson Company Sold Inventory in the Amount of $5,800