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Please solve the question if you are completely sure about the solution with steps, otherwise I will downvote it. Thanks. Amber Co. uses a perpetual
Please solve the question if you are completely sure about the solution with steps, otherwise I will downvote it.
Thanks.
Amber Co. uses a perpetual inventory system. The company sells merchandise inventory to Jasmine Inc. on June 8 for $32,500 on credit, 2/10,n/30,FOB destination point. The cost of the merchandise inventory was $21,000. On June 14 Jasmine Inc. returned $8,000 of the merchandise inventory because it was the wrong model. The returned merchandise had a cost of $5,600. What is the appropriate entry Amber Co. records for the return? a) Dr. Accounts receivable 8,000 and Cr. Sales returns \& allowances 8,000 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 b) Dr. Sales returns \& allowances 5,600 and Cr. Accounts receivable 5,600 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 c) Dr. Sales returns \& allowances 8,000 and Cr. Accounts receivable 8,000 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 d) Dr. Sales returns \& allowances 8,000 and Cr. Accounts receivable 8,000 AND Dr. Cost of sales 5,600 and Cr. Merchandise inventory 5,600 a) Dr. Accounts receivable 8,000 and Cr. Sales returns \& allowances 8,000 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 b) Dr. Sales returns \& allowances 5,600 and Cr. Accounts receivable 5,600 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 c) Dr. Sales returns \& allowances 8,000 and Cr. Accounts receivable 8,000 AND Dr. Merchandise inventory 5,600 and Cr. Cost of sales 5,600 d) Dr. Sales returns \& allowances 8,000 and Cr. Accounts receivable 8,000 AND Dr. Cost of sales 5,600 and Cr. Merchandise inventory 5,600 e) Dr. Sales returns \& allowances 8,000 and Cr. Accounts receivable 8,000 AND Dr. Merchandise inventory 8,000 and Cr. Cost of sales 8,000Step by Step Solution
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