Brendan Company sold merchandise worth $1,600 on credit, terms n/15 and on the next day the customer returned merchandise worth $100, which cost $60 for Brendan Company. What is the required journal entry to record the merchandise returns under the perpetual inventory system? a. Accounts Receivables 100 Sales Returns and Allowances 100 Cost of Goods Sold 60 Merchandise Inventory 36 b. Sales Returns and Allowances 100 Accounts Receivables 100 Merchandise Inventory 60 Cost of Goods Sold 60 c. Accounts Receivables 100 Merchandise Inventory 100 Cost of Goods Sold 60 Sales 60 d. Merchandise Inventory 100 Sales 100 Sales 60 Cost of Goods Sold 60

And to format or specify which side is debits and which is credits. 

Answer rating: 100% (QA)

Journal entry to record merchandise return Date General ... View the full answer