Merchandise costing $750 was sold on credit to Jaffes Company for $1,000 . Five days later, $150 of merchandise was returned. The cost of the returned merchandise was $115 . Assuming the periodic inventory system is used, the entry to record the return of the merchandise is a
a. debit to Merchandise Inventory for $115 and a credit to Cost of Goods Sold for $115.
b. debit to Accounts Receivable for $115 and a credit to Sales Returns and Allowances for $115.
c. debit to Merchandise Inventory for $150 and a credit to Cost of Goods Sold for $150.
d. debit to Sales Returns and Allowances for $150 and a credit to Accounts Receivable for $150.
d
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