51.

Assume that Atom Electric and Neutron use the contract-based approach for revenue recognition. Atom Electric returned to Neutron Inc. 5 damaged fuses that were sent to recycling. Neutron accepted the return and refunded the $ 200 Atom had paid for the order. To record this return, Neutrons accountant must

		debit Cash and credit Sales for $ 200.
		debit Sales Returns and Allowances and credit Cash for $ 200.
		debit Refund Liability and credit Cash for $ 200.
		debit Sales Returns and Allowances and credit Accounts Receivable for $ 200.

54.

In a periodic system, if the accounting records show an opening inventory balance of $ 15,000 and a physical count shows a balance of $ 20,000, it is necessary to

		debit Income Summary and credit Merchandise Inventory for $ 15,000.
		debit Merchandise Inventory and credit Cost of Goods Sold for $ 5,000.
		debit Merchandise Inventory and credit Income Summary for $ 20,000.
		both a) and c)

58.

Assume that Trish Company uses the contract-based approach for revenue recognition. Trish Company sells merchandise on account for $ 2,400 to Trash Company. Trash Company returns $ 800 (cost $ 500) of merchandise that was the wrong colour, along with a cheque to settle the account. What entry does Trish Company make upon receipt of the cheque and the returned merchandise?