Question
On I July 2020, Jordan Co., sells inventory on account to Polo Company for $1,000 terms 2/10, n/30.The cost of the inventory is $800. On
On I July 2020, Jordan Co., sells inventory on account to Polo Company for $1,000 terms 2/10, n/30.The cost of the inventory is $800. On July 5, Polo returns inventory of $100 to Jordan Co. The cost to Jordan is $80. What should be the journal entry torecordthe sales returns in the book of Jordan Co. if it uses Perpetual inventory system?
Select one:
a.Sales revenue100
Accounts receivable 100
Inventory 80
COGS80
b.Sales returns and allowances 100
Accounts receivable100
COGS80
Inventory80
c.Accounts receivable100
Sales revenue100
COGS80
Inventory80
d.Sales returns and allowances 100
Accounts receivable100
Inventory 80
COGS80
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