A Customer Returned Merchandise Purchased with Cash with a Sales

question 136

Multiple Choice

A customer returned merchandise purchased with cash with a sales price of $9,500.The cost of goods was $3,800.Which of the following represents the correct way to record this transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Refunds Payable } & 9,500 & \\
• \hline \text { Sales Revenue } & & 9,500 \\
• \hline & & \\
• \hline \text { Merchandise Inventory } & 3,800 & \\
• \hline \begin{array} { l }
• \text { Estimated Returns } \\
• \text { Inventory }
• \end{array} & & 3,800 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Refunds Payable } & 9,500 & \\
• \hline \text { Cash } & & 9,500 \\
• \hline & & \\
• \hline \text { Merchandise Inventory } & 3,800 & \\
• \hline \begin{array} { l }
• \text { Estimated Returns } \\
• \text { Inventory }
• \end{array} & & 3,800 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Revenue } & 9,500 & \\
• \hline \text { Cash } & & 9,500 \\
• \hline \\
• \hline \text { Merchandise Inventory } &3,800 & \\
• \hline \text { Cost of Goods Sold } & & 3,800\\
• \hline
• \end{array}\]
• D) \(\begin{array}{|l|l|l|}
• \hline\text { Sales Returns and } & & \\
• \text { Allowances } & 9,500 & \\
• \hline \text { Cash } & & 9,500 \\
• \hline & & \\
• \hline \text { Estimated Returns Inventory } & 3,800 & \\
• \hline \text { Merchandise Inventory } & & 3,800 \\
• \hline
• \end{array}\)

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