Question
On March 1, Dilbert Inc sells 2,000 units to Tundra Inc for $5/unit or a total of $10,000. Dilbert's cost is $3/unit. On March 7,
On March 1, Dilbert Inc sells 2,000 units to Tundra Inc for $5/unit or a total of $10,000. Dilbert's cost is $3/unit. On March 7, Tundra returns 150 units because they are defective.
What is Tundra's journal entry to record the return?
DR: Sales Returns and Allowances, Accounts Payable, Loss on Defective Merchandise, Inventory (450, 750, or 0)
CR: Sales Returns and Allowances, Accounts Payable, Loss on Defective Merchandise, Inventory (450, 750, or 0)
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Financial Accounting The Basics
Authors: Ilias Basioudis
1st Edition
1138605514, 9781138605510
