QUESTION 26 Eric Company sold $100,000 worth of goods on account to Adam Inc. on June 20. Eric marks all goods up 25% on cost. Adam has 30 days to return the goods for any reason. On July 1, Adam returns $8,000 worth of goods. Eric expects to be able to resell the returned goods at a profit. The journal entries for Eric to record the initial sales on June 20 included debits to Accounts Receivable for $100,000, and Sales of $80,000. Accounts Receivable for $100,000, and Cost of Goods Sold for $80,000. Inventory for $100,000, and Cash for $80,000. O No entry can be made because the items can be returned. 1 poin

QUESTION 26 Eric Company sold $100,000 worth of goods on account to Adam Inc. on June 20. Eric marks all goods up 25% on cost. Adam has 30 days to return the goods for any reason. On July 1, Adam returns $8,000 worth of goods. Eric expects to be able to resell the returned goods at a profit. The journal entries for Eric to record the initial sales on June 20 included debits to Accounts Receivable for $100,000, and Sales of $80,000. Accounts Receivable for $100,000, and Cost of Goods Sold for $80,000. Inventory for $100,000, and Cash for $80,000. No entry can be made because the items can be returned. 1 poin