The following is selected information from Mars Corp. Compute net purchases, and cost of goods sold for the month of March. Inventory, February 28, 2018 $450,000 Inventory, March 31, 2018 330,500 Purchase discounts 12,450 Purchase returns and allowances 23,870 Sales 276,900 Sales discounts 34,660 Gross purchases 120,400 Solution Net Purchases = Cost of Goods Sold = On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each bike cost Barrio Bikes $100. The customer had yet to pay on their account. The bikes are in sellable condition. Prepare the journal entry or entries to recognize this return if the company uses A. the perpetual inventory system B. the periodic inventory system Solution A. Perpetual Apr. 5 Sales Returns and Allowances Accounts Receivable To recognize sales return under perpetual inventory system Apr. 5 Merchandise Inventory Cost of Goods Sold To recognize cost of inventory returned B. Periodic Apr. 5 Sales Returns and Allowances Accounts Receivable To recognize sales return under periodic inventory system; no cost entry recorded