A customer returned merchandise, with a selling price of $2,400 purchased on account, to a furniture store. Ignoring the cost of goods returned, which journal entry should the furniture store prepare? Assume no discounts were offered. A. Debit Sales Refunds Payable for $2,400 and credit Accounts Receivable for $2,400. B. Debit Sales Revenue for $2,400 and credit Sales Refunds Payable for $2,400. C. Debit Sales Refunds Payable for $2,400 and credit Sales Revenue for $2,400. D. Debit Sales Revenue for $2,400 and credit Cash for $2,400. Thanks!!
A customer returned merchandise, with a selling price of $2,400 purchased on account, to a furniture store. Ignoring the cost of goods returned, which journal entry should the furniture store prepare? Assume no discounts were offered. A. Debit Sales Refunds Payable for $2,400 and credit Accounts Receivable for $2,400. B. Debit Sales Revenue for $2,400 and credit Sales Refunds Payable for $2,400. C. Debit Sales Refunds Payable for $2,400 and credit Sales Revenue for $2,400. D. Debit Sales Revenue for $2,400 and credit Cash for $2,400. Thanks!!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A customer returned merchandise, with a selling price of $2,400 purchased on account, to a furniture store. Ignoring the cost of goods returned, which journal entry should the furniture store prepare? Assume no discounts were offered.
Debit Sales Refunds Payable for $2,400 and credit Accounts Receivable for $2,400.
Debit Sales Revenue for $2,400 and credit Sales Refunds Payable for $2,400.
Debit Sales Refunds Payable for $2,400 and credit Sales Revenue for $2,400.
Debit Sales Revenue for $2,400 and credit Cash for $2,400.
Thanks!!
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