A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer Complete the two journal entries to record the return transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns The first journal entry is to record the revenue part of the transaction the second journal entry is to record the cost part View transaction list Journal entry worksheet Prepare the journal entry is to record the revenue part of the transaction Noter Enter debits before credts Date General Journal Debit Credit April 17 Record entry Clear entry View general journal

Question

Keenan Schultz

Business

4 April, 10:24

A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer Complete the two journal entries to record the return transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns The first journal entry is to record the revenue part of the transaction the second journal entry is to record the cost part View transaction list Journal entry worksheet Prepare the journal entry is to record the revenue part of the transaction Noter Enter debits before credts Date General Journal Debit Credit April 17 Record entry Clear entry View general journal

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Haley Moran · Answer 1

Date General Journal Debit Credit

April 17 Sales Returns $1000

Account Receivable $1000

Inventory Account $480

Cost Of Goods Sold Account $480

Returns of goods by a customer under perpetual inventory system.

Explanation:

Date General Journal Debit Credit

April 17 Sales Returns $1000

Account Receivable $1000

Inventory Account $480

Cost Of Goods Sold Account $480

Returns of goods by a customer under perpetual inventory system.

A perpetual inventory system is used when the inventory accounting is kept continuously up to date and involves the continual recording of additions to and issues or sales of materials on daily basis. Under this system a ledger account (inventory account) is maintained which shows the cost of goods sold at any time during the accounting period.