Under the perpetual inventory? system, the adjusting journal entries to record e

Question

Under the perpetual inventory? system, the adjusting journal entries to record estimated sales returns? (the original sales were on? account) would? be: A. Accounts Receivable XX ???????Sales Revenue XX Sales Revenue XX ???????Cost of Goods Sold XX B. Sales Returns and Allowances XX ???????Cost of Goods Sold XX Merchandise Inventory XX ???????Accounts Receivable XX C. Sales Revenue XX ???????Refunds Payable XX Estimated Returns Inventory XX ???????Cost of Goods Sold XX D. Sales Revenue XX ???????Merchandise Inventory XX Estimated Returns Inventory XX ???????Refunds Payable XX

Explanation / Answer

We pass the following journal Entry for sales return Account titles & Explanations Debit Credit Sales return & allowance XXX Account receivable XXX Merchandise inventory XXX Cost of goods sold XXx Hence option B) is the correct answer

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.