Which of the following represents. The cost of goods was 1800.
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This increases debit Sales Returns and Allowances and decreases credit Cash.
. Debit Cost of Goods Sold and credit Inventory D. Cash 4500 Merchandise Inventory 1800 Estimated Returns Inventory 1800. If they pay outside the discount window the company debits Accounts Payable and credits Cash.
The first entry debits the accounts receivable account and credits the purchase returns and allowances account. When merchandise purchased on account is returned only one. CBS does not have to consider the condition of the merchandise or return it to their inventory because the customer keeps the merchandise.
The cost of goods was 2600. This may convince buyers to. Purchase Return Journal Entry is passed by the company to record the transaction of return of the merchandise purchased from the supplier.
The purchases account is debited and the cash account is credited. If purchase was initially made on credit the payable recognized must be reversed by the amount of purchases returned. On 1 January 2016 John Traders purchased merchandise for 15000 in cash from Sam Co.
The cost of goods was 3000. The only difference is that instead of crediting Cash the stores accountant should credit Accounts Payable to. Debit Cash and credit Sales Revenue C.
But instead of entering in your Cash account you credit your Accounts Payable account. On April 3 a customer returned 550 of merchandise that had been purchased with cash to Rick Supplies. A customer returned merchandise purchased with cash with a sales price of 4500.
Rather than refunding a customer with cash you might credit merchandise at your business. Accounting for a purchase return with store credit is similar to a cash refund. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns.
A customer returned merchandise purchased with cash with a sales price of 1500. A merchant is exempt from this requirement if it provides a cash or credit refund within 20 days or more of purchase. If a company returns merchandise before remitting payment they would debit Accounts Payable and credit Merchandise Inventory.
When Merchandise Are Purchased for Cash. The amount of the cash refund is. Sales Returns and Allowances Cash 1500 600 Estimated Returns Inventory Merchandise Inventory.
Accounts payable 30 Purchase returns and allowances 30 17 Paid supplier the amount due. A customer returned merchandise purchased with cash with a sales price of 6500. Hence the value of goods returned to the supplier must be deducted from purchases.
What journal entry will Cypress use to record the return. If the company returns merchandise after remitting payment they would debit Cash and credit Merchandise Inventory. Rick s cost of the goods returned was 200.
The cost of goods was 3800. There is need to account for purchase returns as though no purchase had occurred in the first place. Merchandise returned for store credit Accounting for a return of merchandise for a store credit is almost the same as in the case of a cash refund.
Purchases 400 Accounts payable 400 15 Returned merchandise purchased on August 12 P30000. The cost of goods was 600. The physical inventory count shows inventory of.
If the purchases in respect of the goods returned were made for cash. Other circumstances in the life of the buyermoving downsizing getting married changing jobsmight also cause them to return merchandise. The customer returned some of that merchandise because it was not satisfactory.
Debit Sales Revenue and credit Cash. Debit Sales Revenue and credit Inventory B. Which of the following represents the correct way to record this transaction.
Sales Returns and Allowances 9500 Cash 9500 Estimated Returns Inventory 3800. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns. Here the cash account debits in case of the cash purchases or the accounts payable account in case of the credit purchases and the purchase return account will be credited in the books of accounts of the company.
If merchandise are purchased for cash the accounts involved in the transaction are the purchases account and cash account. A customer returned merchandise purchased with cash with a sales price of 9500. A customer purchases 55 units of the 4-in-1 desktop printers on October 1 on credit.
The second entry debits the cash account and credits the accounts receivable account. A cash customer purchased 3000 of merchandise on which sales tax of 7 was charged. A merchant must notify its customers of its return policy by a sign attached to the goods or placed in a conspicuous public area of the merchants premises.
Accounts payable 370 Purchase discount 370000 x 3 11 Cash 358 20 Paid freight charges of P5000 on merchandise acquired last August 6. The customer subsequently returned 500 of the merchandise for a refund. When merchandise purchased for cash is returned it is necessary to make two journal entries.
Solution for A customer returned merchandise purchased with cash with a sales price of 7500. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns. A customer returned merchandise purchased with cash with a sales price of 9500The cost of goods was 3800.
The general ledger shows a balance of 66400 in the Merchandise Inventory account at the end of the period. First try highlighting distinguishing features of the item in the product description.
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