Mary operates a wholesale business that distributes canned food. She receives a complaint from a customer and accepts $500 worth of product back from the customer that was billed on account. The cost of the product is $300. Which of the following entries is correct? Select one: a. Dr. Sales Returns and Allowances $500, Cr. A/R $500 and Dr. Merchandise Inventory $300, Cr. COGS $300 b. Dr. A/R $500, Cr. Sales Returns and Allowances $500 c. Dr. A/R $500, Cr. Sales Returns and Allowances $500 and Dr. Merchandise Inventory $300, Cr. COGS $300 d. Dr. Sales Returns and Allowances $500, Cr. A/R $500
Mary operates a wholesale business that distributes canned food. She receives a complaint from a customer and accepts $500 worth of product back from the customer that was billed on account. The cost of the product is $300. Which of the following entries is correct? Select one: a. Dr. Sales Returns and Allowances $500, Cr. A/R $500 and Dr. Merchandise Inventory $300, Cr. COGS $300 b. Dr. A/R $500, Cr. Sales Returns and Allowances $500 c. Dr. A/R $500, Cr. Sales Returns and Allowances $500 and Dr. Merchandise Inventory $300, Cr. COGS $300 d. Dr. Sales Returns and Allowances $500, Cr. A/R $500
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5EA: Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises....
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Mary operates a wholesale business that distributes canned food. She receives a complaint from a customer and accepts $500 worth of product back from the customer that was billed on account. The cost of the product is $300. Which of the following entries is correct?
Select one:
a. Dr. Sales Returns and Allowances $500, Cr. A/R $500 and Dr. Merchandise Inventory $300, Cr. COGS $300
b. Dr. A/R $500, Cr. Sales Returns and Allowances $500
c. Dr. A/R $500, Cr. Sales Returns and Allowances $500 and Dr. Merchandise Inventory $300, Cr. COGS $300
d. Dr. Sales Returns and Allowances $500, Cr. A/R $500
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