Mack Industries Uses the Perpetual Inventory System

question 11

Multiple Choice

Mack Industries uses the perpetual inventory system. What is the entry to record $250 of returned merchandise, with a cost of $100, from customer Jake Sanders?

• A) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250.
• B) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Purchases for $100; credit Purchase Returns & Allowances for $100.
• C) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Merchandise Inventory for $100; credit Cost of Goods Sold for $100.
• D) Debit Sales Returns & Allowances for $250; credit Cash for $100, credit Sales for $150.

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Definitions:

Planning Phase

The initial stage in a project or plan where objectives are set, strategies are formulated, and detailed plans are established to achieve those objectives.

Strategic Marketing

The process of planning, developing, and implementing maneuvers to achieve a competitive edge in the market.

Marketing Process

A systematic series of actions taken by marketers to identify target markets, create strategies, implement plans, and evaluate performance towards achieving marketing objectives.

Organizational Goals

The strategic objectives that a company or organization aims to achieve, which guide its operations and strategic planning.