On April 5, a customer returns 19 bicycles with a sales price of $240 per bike to Barrio Bikes. Each bike cost Barrio Bikes $130. The customer had yet to pay on their account. The bikes are in sellable condition. Assume the perpetual and periodic methods are used.Question Content AreaA. Prepare the journal entries to recognize this return if the company uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.Apr. 5 Sales return Sales Returns and AllowancesSales Returns and Allowances Accounts ReceivableAccounts ReceivableApr. 5 Cost of inventory returned Merchandise InventoryMerchandise Inventory B. Prepare the journal entry to recognize this return if the company uses the periodic inventory system. If an amount box does not require an entry, leave it blank.Apr. 5 Sales Returns and AllowancesSales Returns and Allowances Accounts ReceivableAccounts Receivable

Periodic inventory method: It is a inventory valuation method in which inventory is updated at the…

Answered: On April 5, a customer returns 19…

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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Question Content Area

A. Prepare the journal entries to recognize this return if the company uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.

Apr. 5 Sales return	Sales Returns and Allowances	Sales Returns and Allowances
	Accounts Receivable	Accounts Receivable
Apr. 5 Cost of inventory returned	Merchandise Inventory	Merchandise Inventory

B. Prepare the journal entry to recognize this return if the company uses the periodic inventory system. If an amount box does not require an entry, leave it blank.

Apr. 5		Sales Returns and Allowances	Sales Returns and Allowances
		Accounts Receivable	Accounts Receivable

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