Kasper Shack,Inc.acquired merchandise inventory for $1,300 cash on January 12^th.On January 21^st,it noticed that the wrong merchandise had been shipped and returned it to the supplier for a cash refund.Which of the following is the journal entry that would be required for the return of the merchandise on January 21^st? A)$\begin{array}{lll} \text { } & \mathrm{Dr.}& \mathrm{Cr.}\ {\text { Cash }} & 1,300 & \ \text { Merchandise Inventory } & &1,300 & \ \end{array}$ B)$\begin{array}{lccc} \text { } & \mathrm{Dr.}& \mathrm{Cr.}\ \text { Merchandise Inventory } & 1,300 & \ \quad \text { Cash } & & 1,300\ \end{array}$ C)$\begin{array}{lccc} \text { } & \mathrm{Dr.}& \mathrm{Cr.}\ \text { Accounts Payable } & 1,300 & \ \quad \text { Merchandise Inventory } & & 1,300\ \end{array}$ D)$\begin{array}{lccc} \text { } & \mathrm{Dr.}& \mathrm{Cr.}\ \text { Merchandise Inventory } & 1,300 & \ \quad \text { Accounts Payable } & & 1,300\ \end{array}$ E)$\begin{array}{lccc} \text { } & \mathrm{Dr.}& \mathrm{Cr.}\ \text { Cash } & 1,300 & \ \quad \text { Accounts Payable } & & 1,300\ \end{array}$

Question

Quizplus · Accepted Answer

The correct journal entry for returning merchandise and receiving a cash refund is to debit Cash and credit Merchandise Inventory, reversing the original purchase entry.

Kasper Shack,Inc Dr.Cr. Cash 1,300 Merchandise Inventory 1,300\begin{array}{lll}\text { } & \mathrm{Dr.}& \mathrm{Cr.}\\{\text { Cash }} & 1,300 & \\\text { Merchandise Inventory } & &1,300 & \\\end{array} Cash Merchandise Inventory ​Dr.1,300​Cr.1,300​​

Kasper Shack,Inc $\begin{array}{lll}\text { } & \mathrm{Dr.}& \mathrm{Cr.}\\{\text { Cash }} & 1,300 & \\\text { Merchandise Inventory } & &1,300 & \\\end{array}$