On April 3, a customer returned $600 of merchandise that had been purchased withcash to Ryan Supplies. Ryan’s cost of the goods returned was $200. Which journal entry orentries should Ryan prepare? (No sales discount was offered for early payment.)a. One entry to debit Cash and credit Sales Refunds Payable for $600; another entry todebit Inventory Returns Estimated and credit Inventory for $200.b. One entry to debit Sales Refunds Payable and credit Cash for $600; another entry todebit Inventory and credit Inventory Returns Estimated for $200.c. One entry to debit Sales Revenue for $600 and credit Cash for $600.d. One entry to debit Sales Revenue for $400, debit Refund Expense for $200, and creditCash for $600.
On April 3, a customer returned $600 of merchandise that had been purchased with
cash to Ryan Supplies. Ryan’s cost of the goods returned was $200. Which
entries should Ryan prepare? (No sales discount was offered for early payment.)
a. One entry to debit Cash and credit Sales Refunds Payable for $600; another entry to
debit Inventory Returns Estimated and credit Inventory for $200.
b. One entry to debit Sales Refunds Payable and credit Cash for $600; another entry to
debit Inventory and credit Inventory Returns Estimated for $200.
c. One entry to debit Sales Revenue for $600 and credit Cash for $600.
d. One entry to debit Sales Revenue for $400, debit Refund Expense for $200, and credit
Cash for $600.
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