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:

Omnichannel Strategy

An approach to sales and marketing that provides customers with a seamless shopping experience across all platforms, such as online, mobile, and brick-and-mortar.

Coupon Codes

Alphanumeric strings offered by retailers to consumers for a discount on purchases, typically entered at checkout on online shopping sites.

Smart Lock

An electromechanical lock designed to perform locking and unlocking operations when it receives such instructions from an authorized device using a wireless protocol.

Cellular Connection

A type of wireless communication link, used in mobile devices, that connects to the internet or other networks via a cellular network.