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Dogs R US uses the perpetual inventory system to account for its merchandise.

1. A customer returned merchandise.
2. Assuming that the purchase was originally bought on credit for $400 with a cost to Dogs R US of $100,
3. demonstrate required journal entry of Dogs R US to record the return by selecting all of the correct actions below

Respuesta :

jepessoa

Answer:

The journal entry for the return of the merchandise would be:

  • Dr Merchandise Inventory account 100
  • Cr Cost of Goods Sold account 100

The journal entry for the the cancellation of the debt would be

  • Dr Sales Returns and Allowances account 400
  • Cr Accounts Receivable account 400

Explanation:

A separate journal entry must be made for each transaction since the amounts are different.

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