If merchandise is returned and restored to inventory, the Cost of Goods Sold account is credited. However,

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If merchandise is returned and restored to inventory, the Cost of Goods Sold account is credited. However, if merchandise is returned but not restored to inventory (because it is not resaleable), Cost of Goods Sold is not credited. Why not?

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Posted: Jan 11, 2017 09:56 AM

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If merchandise is returned and restored to inventory, the Cost of Goods Sold account is credited. However,

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If the inventory is not resaleable it cannot be included in inventory ...View the full answer

Financial Accounting Tools for Business Decision Making

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