Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth $400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade? a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400 b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400 c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400 d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400
Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth $400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade? a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400 b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400 c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400 d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...
Related questions
Question
![Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth
$400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade?
a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400
b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400
c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400
d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff08f5046-d985-4df4-832b-fa196d74c365%2Fa2c55753-fa42-403e-b67a-534e0075d574%2Fu8gb1od_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth
$400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade?
a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400
b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400
c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400
d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400
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