Asked by David Thibodeaux-Benoit on May 13, 2024
Verified
Vander uses the periodic inventory system and the gross method of accounting for sales.On September 14,Jepson 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 Vander must make on September 14 is (are) :
A)
B)
C)
D)
E)
Periodic Inventory System
An accounting system that records inventory purchases during the accounting period but waits until the end of the period to adjust the inventory balances and record cost of goods sold.
Gross Method
An accounting practice for recording the full invoice amount of a sale without deducting any discounts offered.
Merchandise Return
The process by which a customer returns previously purchased merchandise back to the seller, often due to defects or dissatisfaction.
- Acknowledge and log the occurrences of sales returns and allowances.
Verified Answer
Option A is incorrect because it records the payment made by Jepson on September 22 and not the return of merchandise on September 14.
Option C is incorrect because it records the sale on September 12, not the return of merchandise on September 14.
Option D is incorrect because it records the payment made by Jepson on September 22, not the return of merchandise on September 14.
Option E is incorrect because it records the payment made by Jepson on September 22, not the return of merchandise on September 14.
Learning Objectives
- Acknowledge and log the occurrences of sales returns and allowances.
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