Merchandise inventory of $2,800costing $1,568was sold in the province of Quebec. Assume the company uses a perpetual inventory system and the earnings approach to revenue recognition. The QST is9.975%. Half of the shipment is returned because the incorrect sizes have been shipped.

Record the sale and sales return of merchandise on the seller's books.

THANK YOU!

Account Titles and Explanation Debit Credit

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(To record sales on account.)

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(To record cost of goods sold.)

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(To record sales return.)

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(To record merchandise inventory returned.)