Question

Dogs R US uses the perpetual inventory system to account for its merchandise. A customer returned merchandise. Assuming that the purchase was originally bought on credit for $400 with a cost to Dogs R US of $100, demonstrate required journal entry of Dogs R US to record the return by selecting all of the correct actions below. (Check all that apply.) Multiple select question. Credit Accounts Receivable $400. Credit Sales Returns and Allowances $400. Debit Accounts Payable $400. Credit Merchandise Inventory $100. Credit Cash $400. Debit Sales Returns and Allowances $400. Credit Cost of Goods Sold $100. Debit Cost of Goods Sold $100. Debit Merchandise Inventory $100.

Answer 1

Credit cost of goods sold $100.

Debit merchandise inventory $100.

Credit accounts receivable $400.

Debit sales returns and allowances $400.

Step-by-step explanation:

These are the demonstrate required journal entries of Dogs R US to record the return.

Credit cost of goods sold $100.

Debit merchandise inventory $100.

Credit accounts receivable $400.

Debit sales returns and allowances $400.