Knowledge Check 01 A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer. Complete the two journal entries to record the return transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part. View transaction list Journal entry worksheet 1 2 Prepare the journal entry is to record the revenue part of the transaction. Note: Enter debits before credits. Date April 17 General Journal Sales returns and allowances Debit Credit 1,000 Accounts receivable 1,000 > A seller uses a perpetual inventory system, and on April 17, a customer returns $1,000 of merchandise previously purchased on credit on April 13. The seller's cost of the merchandise returned was $480. The merchandise is not defective and is restored to inventory. The seller has not yet received any cash from the customer. Complete the two journal entries to record the return transaction by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. The first journal entry is to record the revenue part of the transaction and the second journal entry is to record the cost part. View transaction list Journal entry worksheet 1 2 Prepare the second journal entry is to record the cost part. Note: Enter debits before credits. Date April 17 General Journal Debit Credit