Under a Periodic Inventory System, the Entries to Record a $3,400

question 115

Multiple Choice

Under a periodic inventory system, the entries to record a $3,400 sales return for undamaged goods on an original cash sale when the merchandise had a cost of $1,500 include a debit to:

• A)Accounts Receivable of $3,400.
• B)Cost of Goods Sold of $1,500.
• C)Sales Returns and Allowances of $3,400.
• D)Inventory of $1,500.

---

Definitions:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors, using fewer resources.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than other competitors with the same quality.

Oil

A fossil fuel in liquid form, primarily used as a source of energy and as a base for petrochemicals, extracted from underground reservoirs.