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) \[\begin{array} { | l | r | r | }
• \hline \text { Sales Returns and Allowances } & \text { XX } & \\
• \hline \text { Cost of Goods Sold } & & \text { XX } \\
• \hline\\
• \hline \text { Merchandise Inventory } &\text { XX } & \\
• \hline \text { Accounts Receivable } & & \text { XX } \\
• \hline
• \end{array}\]

Appreciate the role of benchmarks and best practices in organizational performance improvement.

Analyze the relationship between control systems and organizational strategy.

Understand the impact of technology and innovation on organizational control and performance.

Recognize the importance of internal and external audits in the control process.

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Definitions:

Trimester

One of the three approximately three-month periods into which pregnancy is divided.

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Groups of organs that work together to perform specific biological functions within an organism.

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Able to operate or exist independently without external support or input.