Brendan Company sold merchandise worth $1,600 on credit,terms n/15 and on the next day the customer returned merchandise worth $100,which cost $60 for Brendan Company.What is the required journal entry to record the merchandise returns under the perpetual inventory system?

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The journal entry to record the merchandise returns under the perpetual inventory system would be to debit the Sales Returns and Allowances account for $100, credit Accounts Receivable for $100 (to cancel out the original sale), debit Inventory for $60 (to return the cost of the merchandise), and credit Cost of Goods Sold for $60 (to remove the cost from the original sale). Choice B is the only option that includes these entries.

Brendan Company Sold Merchandise Worth $1,600 on Credit,terms N/15 and on the Next