On July 8, Cambridge returned merchandise worth $2,020 to Sipacore. Its original cost was $1,116. The merchandise was restored to inventory. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation July 8 July 8 Refund Liability Accounts Receivable (To record sales return) Inventory Sales Returns and Allowances (To record cost of merchandise returned) Debit 2,020 1,116 Credit 2,020 1,116

On July 8, Cambridge returned merchandise worth $2,020 to Sipacore. Its original cost was $1,116. The merchandise was restored to inventory. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation July 8 July 8 Refund Liability Accounts Receivable (To record sales return) Inventory Sales Returns and Allowances (To record cost of merchandise returned) Debit 2,020 1,116 Credit 2,020 1,116

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...

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