Question

On September 12, Wynn Company sold merchandise in the amount of $5,800 to Jetson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Wynn uses the periodic inventory system. On September 14, Jetson returns some of the merchandise. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Wynn must make on September 14 is: 500 500 Accounts receivable Sales returns and allowances Cost of goods sold Merchandise inventory 350 350 350 Sales returns and allowances Accounts receivable 350 500 Accounts receivable Sales returns and allowances 500 500 Sales returns and allowances Accounts receivable • 500 500 500 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 350 350

Answer 1

Inventory goods periodic the end count and sold and inventory of the calculation of cost of Inventory in a system are made at period. When not goods goods are returned its recorded now. Only sale returned is recorded. cost value is of The entry will be. Sep 14th Sales Returns al allowances Account Reclivables $500 $500 Option 4) is correct.