Bryson Company Records Returns and Allowances in the General Journal

question 72

Multiple Choice

Bryson Company records returns and allowances in the general journal.On 25 June,Bryson issued a $120 debit note for goods purchased on credit from Crimson because part of what was sent was not what Bryson ordered.What entry does Bryson make? Ignore GST and assume a perpetual inventory system.

• A)Accounts payable-Crimson 120 Inventory 120
• B)No entry is required by Bryson.
• C)Accounts payable-Crimson 120 Accounts receivable-Crimson 120
• D)Accounts receivable-Crimson 120 Sales returns and allowances 120

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Definitions:

Potential Sellers

Potential sellers are individuals or entities that may be willing to sell goods or services under the right conditions.

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.

Surplus

An excess of revenues over expenses in a budget, or an excess of goods or materials than what is needed.

Price Floor

A government-imposed minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.