On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ryan uses the periodic inventory system and the net method of accounting for sales. On September 14, Johnson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ryan must make on September 14 is (are):
A.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 | |
| Merchandise inventory | 343 | |
| Cost of goods sold | 343 |
B.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 | |
| Merchandise inventory | 350 | |
| Cost of goods sold | 350 |
C.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 |
D.
| Sales returns and allowances | 490 | |
| Accounts receivable | 490 |
E.
| Sales returns and allowances | 350 | |
| Accounts receivable | 350 |
Answer: D
You might also like to view...
Describe four tasks the receiving computer application performs automatically in the integrated purchases processing system
According to the compensation scorecard, functions with a compa ratio below __________ are considered to be paying their employees below the company norm.
A. 25 percent B. 50 percent C. 75 percent D. 100 percent
Federal laws often provide more sweeping and significant protections for the consumer than state laws.?
Indicate whether the statement is true or false
Which of the following is true of COBRA?
A. Government employees are subject to parallel provisions found in the Public Health Service Act. B. Under most circumstances, COBRA coverage is available for 24 months after employment has ended. C. An employer is under no obligation to notify covered employees and their beneficiaries of their rights under COBRA. D. To continue coverage after employment has ended, a person need not pay the group rate premium.