A Customer Returned Merchandise Purchased with Cash with a Sales

question 68

Multiple Choice

A customer returned merchandise purchased with cash with a sales price of $4,500. The cost of goods was $1,800. Which of the following represents the correct way to record this transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Refunds Payable } & 4,500 & \\
• \hline \text { Sales Revenue } & & 4,500 \\
• \hline & & \\
• \hline \text { Merchandise Inventory } & 1,800 & \\
• \hline \text { Estimated Returns Inventory } & & 1,800 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Refunds Payable } & 4,500 & \\
• \hline \text { Cash } & & 4,500 \\
• \hline & & \\
• \hline \text { Merchandise Inventory } & 1,800 & \\
• \hline \text { Estimated Returns Inventory } & & 1,800 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Revenue } & 4,500 & \\
• \hline \text { Cash } & & 4,500 \\
• \hline & & \\
• \hline \text { Merchandise Inventory } & 1,800 & \\
• \hline \text { Cost of Goods Sold } & & 1,800 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Returns and Allowances } & 4,500 & \\
• \hline \text { Cash } & & 4,500 \\
• \hline & & \\
• \hline \text { Estimated Returns Inventory } & 1,800 & \\
• \hline \text { Merchandise Inventory } & & 1,800 \\
• \hline
• \end{array}\]

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Definitions:

Psychological Study

The scientific research or investigation into human mind and behavior, exploring various aspects such as cognition, emotion, and social interactions.

Reactance

A motivational reaction to restrictions on personal freedom, manifesting in an urge to regain that freedom.

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The actions taken by an individual who helps another to commit a crime or wrongful act.

Experimental Realism

The extent to which the conditions of an experiment mimic the real-world scenarios they aim to replicate or study, affecting the validity of the outcomes.