Under a Periodic Inventory System, the Entries to Record a $2,600

question 41

Multiple Choice

Under a periodic inventory system, the entries to record a $2,600 sales return of undamaged goods for a sale originally made on account, when the merchandise had a cost of $1,200, include a:

• A)debit to Inventory of $1,200.
• B)debit to Sales Returns and Allowances of $2,600.
• C)credit to Cost of Goods Sold of $2,600.
• D)credit to Sales Returns and Allowances of $1,200.

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Definitions:

Target Corporation

A large retail corporation based in the United States, known for its wide range of consumer goods, including clothing, electronics, and household items.

Proxies

Written authorizations allowing one person to act on behalf of another, particularly in the context of voting at a shareholder meeting.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, making them owners of a part of the company.

Articles of Incorporation

Legal documents filed with a government body to legally document the creation of a corporation, outlining key aspects and regulations of the corporate structure.