Peace Corp. uses a perpetual inventory system and sells merchandise on account to Rose Limited for $3,000 on February 2. Based on its sales history management expects returns of 5%. The goods cost Peace $1,800. On February 3, Rose returns merchandise worth $500 to Peace. This merchandise costs $300 and is still in saleable condition; therefore, it was put back in inventory. On February 9, Peace receives payment from Rose for the balance due. Identify the journal entry that Peace needs to record for the cost of merchandise sold to Rose on account on February 2 under IFRS.

Answer rating: 100% (QA)

Under IFRS the journal entry to record the cost of merchandise sold and subsequent return would be a... View the full answer