Dogs R US uses the perpetual Inventory system to account for its merchandise. A customer returned merchandise due to a defect.

Dogs R US uses the perpetual Inventory system to account for its merchandise. A customer returned
merchandise due to a defect. Assuming that the purchase was originally bought on credit for $400
with a cost to Dogs R US of $100, and tile defective, returned merchandise Is only estimated to be
worth $30, demonstrate the required journal entry to record the return and to \vrite down the
defective merchandise by selecting all of the correct actions below. (Check all that apply.)

Credit Merchandise lnventory $50.
Credit Accounts Receivable  $400.
Credit Cost of Goods Sold  $100.
Debit Sales Returns and Allowances $400.
Debit Merchandise lnventory $30.
Debit Accounts Payable $400.
Credit Sales Returns and Allowances $400.
Credit Cash $400.
Debit Loss from Defective Merchandise $ 70. 



X·Mart uses the periodic Inventory system to account for Its merchandise. On May 1, It sold $1,400 of
merchandise on credit. The original cost of the merchandise to X-Mart was $500. Demonstrate the
required journal entry to record the sale by selecting all of the correct actions below. (Check all that

apply.)

Credit Accounts Receivable $1.400.
Debit Sales $1.400.
Credit Sales $1.400.
Credit Merchandise Inventory $500.
Debit Merchandise Inventory $500.
Credit Cost of Goods Sold $500.
Debit Cost of Goods Sold $500.
Debit Accounts Receivable $1.400.