100 points MC Qu. 104 Tiger Co. sold merchandise on account. Tiger Co sold merch
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Question
100 points MC Qu. 104 Tiger Co. sold merchandise on account. Tiger Co sold merchandse on account to a customer The customer returned some of that merchandise because it was not satisfactory What journal entry will Tiger use to record the return? O Debit Sales Revenue and credit Inventory O Debt Sales Returns& Allowances and credit Cash O Debir Sales Revenue and credit Cost of Goods Sold O Debt Sales Returns& Allowonces and credit Accounts Receivable, and debit Inventory References Mutiple Choice MC Qu 104 Tiger Co sold merchandise on accountExplanation / Answer
Answer
d. Debit Sales return & Allowance and credit Accounts receivable & debit inventory & credit cost of goods sold .
Explanation : When goods which are sold on account are returned by the customer then the balance in Accounts receivable decreases & sales return indicates decrease in net sales. On return of goods , inventory balance increases & COGS decreases .
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