Mack Industries Uses the Periodic Inventory System

question 4

Multiple Choice

Mack Industries uses the periodic 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; debit Merchandise Inventory for $100; credit Cost of Goods Sold for $100.
• 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 Cash for $100; credit Sales for $150.
• D) Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250.

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Definitions:

Spermatogenesis

The process of sperm cell development, occurring in the seminiferous tubules of the testes.

Ova

The female reproductive cells, or eggs, which are capable of developing into a new organism when fertilized by a sperm cell.

Oocytes

Immature eggs found in the ovaries of females that, upon maturation, can undergo ovulation and potentially fertilization.

Endometrium

The mucous membrane lining the interior of the uterus, which thickens during the menstrual cycle in preparation for possible implantation of an embryo.