Bryson Company records returns and allowances in the general journal.On 25 June,Bryson issued a $120 debit note for goods purchased on credit from Crimson because part of what was sent was not what Bryson ordered.What entry does Bryson make? Ignore GST and assume a perpetual inventory system.
A)Accounts payable-Crimson 120 Inventory 120
B)No entry is required by Bryson.
C)Accounts payable-Crimson 120 Accounts receivable-Crimson 120
D)Accounts receivable-Crimson 120 Sales returns and allowances 120

Question

Quizplus · Accepted Answer

Bryson should debit Accounts Payable-Crimson to reduce the liability and credit Inventory to reflect the return of goods in a perpetual inventory system.

Bryson Company Records Returns and Allowances in the General Journal