Ask Question
20 March, 01:44

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

+1
Answers (1)
  1. 20 March, 01:54
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dogs R US uses the perpetual inventory system to account for its merchandise. 1. A customer returned merchandise. 2. Assuming that the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers