Under a Periodic Inventory System, the Entry to Record the Return

question 88

Multiple Choice

Under a periodic inventory system, the entry to record the return of inventory sold on account for $250 with a cost of $185 would be recorded by the seller as a:

• A)credit to Accounts Receivable for $250.
• B)debit to Sales Returns and Allowances for $185.
• C)credit to Sales Revenue for $250.
• D)credit to Cost of Goods Sold for $185.

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Definitions:

Wage Rate

The standardized amount of compensation received by an employee for performed work per unit of time, typically expressed per hour or year.

Bushel of Corn

A unit of measure for volumes of dry commodities, typically used in the U.S. for agricultural goods like corn, where one bushel equals approximately 56 pounds.

Workers

Individuals engaged in an activity, especially to earn an income.

Equilibrium Market Wage

The wage rate at which the quantity of labor supplied matches the quantity of labor demanded.