SU12018 x Check My Work 2 remaining Sales Returns and Allowa

SU12018 x Check My Work (2 remaining Sales Returns and Allowances On July 15, goods costing $7,000 were sold for $10,000 on account. The customer returned the goods before paying for them. Hide Make the journal entries necessary on the books of the seller to record the return of the goods. Assume that the goods are not damaged and can be resold at their normal selling price. Also assume that the selling company uses a perpetual inventory system. e here to search

Solution

Solution:

Journal Entries
Event	Particulars	Debit	Credit
Sales Return	Sales Return and Allowances Dr	$10,000.00
	To Accounts Receivable		$10,000.00
	(To record sales return)
Inventory Return	Inventories Dr	$7,000.00
	To Cost of Goods Sold		$7,000.00
	(To record inventory return)