On September 12,Vander Company sold merchandise in the amount of $5,800 to Jepson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.
-Vander uses the periodic inventory system and the gross method of accounting for sales.On September 14,Jepson returns some of the non-defective merchandise,which is restored to inventory.The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Vander must make on September 14 is (are):

Question

Quizplus · Accepted Answer

The entry or entries that Vander must make on September 14 is to record the return of merchandise to Jepson. The entry will include debiting accounts payable, crediting sales returns and allowances, and debiting inventory with the cost of the merchandise returned.

Option A is incorrect because it records the payment made by Jepson on September 22 and not the return of merchandise on September 14.

Option C is incorrect because it records the sale on September 12, not the return of merchandise on September 14.

Option D is incorrect because it records the payment made by Jepson on September 22, not the return of merchandise on September 14.

Option E is incorrect because it records the payment made by Jepson on September 22, not the return of merchandise on September 14.

On September 12,Vander Company Sold Merchandise in the Amount of $5,800