Under a periodic inventory system, the entry to record the return of inventory sold on account for $360 with a cost of $210 would be recorded by the seller as a:
A)credit to Accounts Receivable for $210.
B)debit to Sales Returns and Allowances for $360.
C)debit to Sales Revenue for $360.
D)debit to Inventory for $210.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, the seller records the return of inventory sold on account by debiting Sales Returns and Allowances for the selling price of $360, not the cost of the inventory.

Under a Periodic Inventory System, the Entry to Record the Return