On October 1, Robertson Company sold inventory in the amount of $5,800 to Albert

Question

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?

Debit Sales Returns & Allowances and credit Accounts Receivable for $500; debit Inventory and credit Cost of Goods Sold for $350

Debit Sales Returns & Allowances and credit Accounts Receivable for $500

Debit Accounts Receivable and credit Sales Returns & Allowances for $500

Debit Accounts Receivable and credit Sales Returns & Allowances for $500; debit Cost of Goods Sold and credit Inventory for $350

Explanation / Answer

Journal entry :

so answer is b) Debit Sales Returns & Allowances and credit Accounts Receivable for $500

Date accounts & explanation debit Credit Oct 4 Sales return and allowance 500 Account receivable 500 (To record sales return and allowance)

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