Homework Help is Here – Start Your Trial Now!
Business
Accounting
A customer returned merchandise purchased with cash with a sales price of $7,500. The cost of goods was $3,000. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated​ returns?         A. Refunds Payable 7,500        Sales Revenue   7,500       Merchandise Inventory 3,000        Estimated Returns Inventory   3,000   B. Refunds Payable 7,500        Cash   7,500       Merchandise Inventory 3,000        Estimated Returns Inventory   3,000   C. Sales Returns and Allowances 7,500        Cash   7,500       Estimated Returns Inventory 3,000        Merchandise Inventory   3,000   D. Sales Revenue 7,500        Cash   7,500       Merchandise Inventory 3,000        Cost of Goods Sold   3,000

A customer returned merchandise purchased with cash with a sales price of $7,500. The cost of goods was $3,000. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated​ returns?         A. Refunds Payable 7,500        Sales Revenue   7,500       Merchandise Inventory 3,000        Estimated Returns Inventory   3,000   B. Refunds Payable 7,500        Cash   7,500       Merchandise Inventory 3,000        Estimated Returns Inventory   3,000   C. Sales Returns and Allowances 7,500        Cash   7,500       Estimated Returns Inventory 3,000        Merchandise Inventory   3,000   D. Sales Revenue 7,500        Cash   7,500       Merchandise Inventory 3,000        Cost of Goods Sold   3,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
A customer returned merchandise purchased with cash with a sales price of
$7,500.
The cost of goods was
$3,000.
Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated​ returns?
 
 
 
 
A.
Refunds Payable
7,500
  
     Sales Revenue
  
7,500
     
Merchandise Inventory
3,000
  
     Estimated Returns Inventory
  
3,000
 
B.
Refunds Payable
7,500
  
     Cash
  
7,500
     
Merchandise Inventory
3,000
  
     Estimated Returns Inventory
  
3,000
 
C.
Sales Returns and Allowances
7,500
  
     Cash
  
7,500
     
Estimated Returns Inventory
3,000
  
     Merchandise Inventory
  
3,000
 
D.
Sales Revenue
7,500
  
     Cash
  
7,500
     
Merchandise Inventory
3,000
  
     Cost of Goods Sold
  
3,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS