Asked by Roberta Carubia on May 03, 2024
Verified
When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a
A) debit to Merchandise Inventory and a credit to Cash
B) debit to Cash and a credit to Merchandise Inventory
C) debit to Cash and a credit to Sales
D) debit to Sales and a credit to Accounts Payable
Merchandise Inventory
The total value of a company's goods that are available for sale at the end of an accounting period.
Cash
Money in the form of coins or banknotes, especially that owned by a person or organization.
Buyer Returns
Goods returned by the buyer to the seller due to defects, dissatisfaction, or other reasons, impacting the seller's revenue and inventory levels.
- Comprehend the effect of merchandise returns on financial statements.
Verified Answer
Learning Objectives
- Comprehend the effect of merchandise returns on financial statements.
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