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:

Customer Care Center

A department within a company that handles inquiries, supports customers with their needs, and resolves any problems or complaints.

Defective Product

A Defective Product is an item that fails to meet quality standards or does not function as intended, leading to dissatisfaction or harm.

Routine Message

A standardized or regularly occurring communication used in daily operations within organizations or personal communications.

Complete Refund

A complete refund is the full return of money paid for a product or service, typically due to dissatisfaction or a defect.