Under a periodic inventory system, the entries to record a $3,400 sales return for undamaged goods on an original cash sale when the merchandise had a cost of $1,500 include a debit to:
A)Accounts Receivable of $3,400.
B)Cost of Goods Sold of $1,500.
C)Sales Returns and Allowances of $3,400.
D)Inventory of $1,500.

Question

Quizplus · Accepted Answer

In a periodic inventory system, sales returns are recorded by debiting Sales Returns and Allowances for the amount of the return, which is $3,400 in this case.

Under a Periodic Inventory System, the Entries to Record a $3,400