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

question 61

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

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Definitions:

Median

The middle value in a set of data points arranged in ascending or descending order, or the average of the two middle values when there is an even number of data points.

Correlation Coefficient

A numerical measure that indicates the strength and direction of a linear relationship between two variables.

Mean

A measure of central tendency, calculated as the sum of all values in a dataset divided by the number of values.

Geometric Mean

The average of a set of numbers or quantities, computed by taking the nth root of the product of the numbers.