On March 5, 2020 Alpha Co. purchased merchandise on account from LU Co. On March 8, 2020 Alpha returned Damaged goods totaling SAR 500 to LU for credit. The fair value of these goods is SAR 100. Both companies use a perpetual inventory system. The entry to record cost of goods return on LU’s books on March 8 is:

On March 5, 2020 Alpha Co. purchased merchandise on account from LU Co. On March 8, 2020 Alpha returned Damaged goods totaling SAR 500 to LU for credit. The fair value of these goods is SAR 100. Both companies use a perpetual inventory system. The entry to record cost of goods return on LU’s books on March 8 is:

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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