Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer called to say they hadover-ordered and would like to return $500 worth of product that was billed on account. To maintain good relations with thiscustomer, Mary graciously accepted the return. The cost of the product is $300. Which of the following entries correctly recordsthe sales return? Assume Mary uses the perpetual inventory system.Select one:a. Debit Sales Returns and Allowances $500, Credit Accounts Receivable $500b. Debit Sales Returns and Aliowances $500, Credit Accounts Recervable $500 and Debit Merchandise Inventory $300,Credit Cost of Goods Sold $300c. Debit Sales Revenue $500, Credit Merchandise Inventory $300, Credit Cost of Goods Sold $200d. Credit Sales Revenue $500, Debit Accounts Receivable $500 and Credit Merchandise Inventory $300, Debit Cost ofGoods Sold $300

Answer.Mary received a canned food already sold to a customer worth $500 and the cost of those goods…

Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer called to say they had over-ordered and would like to return $500 worth of product that was billed on account. To maintain good relations with this customer, Mary graciously accepted the return. The cost of the product is $300. Which of the following entries correctly records the sales return? Assume Mary uses the perpetual inventory system.

Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer called to say they had over-ordered and would like to return $500 worth of product that was billed on account. To maintain good relations with this customer, Mary graciously accepted the return. The cost of the product is $300. Which of the following entries correctly records the sales return? Assume Mary uses the perpetual inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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