Jennifer Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jennifer uses the perpetual inventory system. On October 4, the customer returns some of the merchandise, which were put back into the inventory . The selling price and the cost of the returned merchandise are $500 and $350, respectively. The entries that Jennifer must make on October 4 will NOT include:
A) Debit to Sales Returns and Allowances for $500
B) Credit to Accounts Receivable for $500
C) Debit to Merchandise Inventory for $500
D) Debit to Merchandise Inventory for $350
E) Credit to Cost of goods Sold for $350
Ans: C) Debit to Merchandise Inventory for $500
Business
You might also like to view...
A ____ strategy relies on access to advertising media
Fill in the blank(s) with the appropriate word(s).
Business
A ________ is a storeless retailer serving a specific clientele—usually employees of large organizations—who are authorized to buy from a list of retailers that have agreed to give discounts in return for inclusion on the list
A) direct-selling vendor B) direct marketing vendor C) buying service D) automatic vendor E) corporate retailer
Business