Under the Perpetual Inventory System, the Adjusting Journal Entries to Record

question 150

Multiple Choice

Under the perpetual inventory system, the adjusting journal entries to record estimated sales returns (the original sales were on account) would be:

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Revenue } &XX & \\
• \hline \text { Merchandise Inventory } & &XX \\
• \hline \text { Estimated Returns Inventory } &XX \\
• \hline \text { Refunds Payable } & & XX \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Revenue } & XX& \\
• \hline \text { Refunds Payable } & &XX \\
• \hline \text { Estimated Returns Inventory } &XX \\
• \hline \text { Cost of Goods Sold } & &XX \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } &XX & \\
• \hline \text { Sales Revenue } & & XX \\
• \hline \text { Sales Revenue } & XX& \\
• \hline \text { Cost of Goods Sold } & & XX\\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Sales Returns and Allowances } &XX& \\
• \hline \text { Cost of Goods Sold } & &XX \\
• \hline \text { Merchandise Inventory } &XX & \\
• \hline \text { Accounts Receivable } &&XX \\
• \hline
• \end{array}\]

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