Ask Question
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)
  1. 21 March, 19:03
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “X-Mart uses the perpetual inventory system to account for its merchandise. A customer who purchased merchandise on account requested an ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers