X-Mart uses the perpetual inventory system to account for its merchandise. A customer who purchased merchandise on account requested an allowance on a merchandise purchase due to its poor quality, but he did not return the goods back to X-Mart. Assuming that X-mart gives an allowance of $50 on the merchandise, demonstrate the required journal entry on X-Mart's books to record the allowance by selecting all of the correct actions below.

Question

Angelique

Business

21 March, 18:45

X-Mart uses the perpetual inventory system to account for its merchandise. A customer who purchased merchandise on account requested an allowance on a merchandise purchase due to its poor quality, but he did not return the goods back to X-Mart. Assuming that X-mart gives an allowance of $50 on the merchandise, demonstrate the required journal entry on X-Mart's books to record the allowance by selecting all of the correct actions below.

+4

Answers (1)

Know the Answer?

Boo · Answer 1

The question is incomplete, however I managed to find similar question with the following as options for selection:

Selection list:

a. Debit Cost of Goods Sold $50.

b. Credit Merchandise Inventory $50.

c. Debit Merchandise Inventory $50.

d. Credit Cash $50.

e. Credit Sales Returns and Allowances $50.

f. Credit Cost of Goods Sold $50

g. Debit Sales Returns and Allowances $50

h. Credit Accounts Receivables $50

Answer:

g. Debit Sales Returns and Allowances $50

h. Credit Accounts Receivables $50