A Customer Returned Merchandise Purchased With Cash

When merchandise purchased for cash is returned it is necessary to make two journal entries. A customer returned merchandise purchased with cash with a sales price of 1500.

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Return of merchandise to a vendor that was damage.

. If purchase was initially made on credit the payable recognized must be reversed by the amount of purchases returned. Sale of merchandise for cash E. What journal entry will Cypress use to record the return.

Cash 4500 Merchandise Inventory 1800 Estimated Returns Inventory 1800. When merchandise purchased on account is returned only one. When a buyer returns merchandise purchased for cash the buyer will record the transaction as a a.

Accounts payable 30 Purchase returns and allowances 30 17 Paid supplier the amount due. Payment of property taxes H. Sale of merchandise on credit D.

Received merchandise returned from a customer. A customer returned merchandise purchased with cash with a sales price of 9500. A customer returned merchandise purchased with cash with a sales price of 4500.

The customer was paid 780 cash for the returned merchandise. Debit to Cash and a credit to Sales d. However if you cant locate your receipt you may still be.

Purchase of merchandise on credit. Sale of merchandise for cash. Purchased supplies for cash 400.

Explanation of accounting for customer returns sales and return allowances purchase allowances cash refunds and store credits. The cost of goods was 1800. Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns.

Which of the following represents the correct way to record this transaction assuming an adjusting entry had been prepared for estimated returns. The only difference is that instead of crediting Cash the stores accountant should credit Accounts Payable to. The cost of goods was 3800.

Purchase Return Journal Entry is passed by the company to record the transaction of return of the merchandise purchased from the supplier. Sale of merchandise on credit. Debit Cost of Goods Sold and credit Inventory D.

Freight costs of 580 were paid in cash. The cost of goods was 600. Debit Sales Revenue and credit Cash.

Purchases 400 Accounts payable 400 15 Returned merchandise purchased on August 12 P30000. Accounts payable 370 Purchase discount 370000 x 3 11 Cash 358 20 Paid freight charges of P5000 on merchandise acquired last August 6. Accounting for sale or purchase of damaged goods Many businesses whether a large chain store or a small mom-and-pop shop have to deal with returns of merchandise because sold items may be broken or damaged.

Purchase of baking equipment on credit C. Debit to Merchandise Inventory and a credit to Cash b. Debit to Cash and a credit to Merchandise Inventory c.

Purchase of a delivery van for cash I. The first entry debits the accounts receivable account and credits the purchase returns and allowances account. Solution for A customer returned merchandise purchased with cash with a sales price of 7500.

Collected the amount due on the account receivable within the discount period. The physical inventory count shows inventory of. Cash refund to a customer who returned a product that was purchased F.

If a customer returns merchandise before remitting payment the company would debit Sales Returns and Allowances and credit Accounts Receivable or Cash. Debit Cash and credit Sales Revenue C. Hence the value of goods returned to the supplier must be deducted from purchases.

There is need to account for purchase returns as though no purchase had occurred in the first place. The second entry debits the cash account and credits the accounts receivable account. Payment of property taxes H.

Received credit from Brauns Wholesale Supply for merchandise returned 300. Adjusting entry to record depreciation B. Here the cash account debits in case of the cash purchases or the accounts payable account in case of the credit purchases and the purchase return account will be credited in the books of accounts of the company.

Sales Returns and Allowances 9500 Cash 9500 Estimated Returns Inventory 3800. But instead of entering in your Cash account you credit your Accounts Payable account. If the purchases in respect of the goods returned were made for cash.

Debit to Sales and a credit to Accounts Payable ANSWER. Stores that accept returned merchandise without a receipt might only refund the amount that the item was sold at its lowest price or they might only provide an in-store credit instead of cash. The cost of goods was 3000.

Delivered goods FOB destination in Event 4. The general ledger shows a balance of 66400 in the Merchandise Inventory account at the end of the period. Return of merchandise to a vendor that was damage G.

Purchase of a delivery van for cash. The customer returned some of that merchandise because it was not satisfactory. Purchased merchandise for cash 1400.

Merchandise returned for store credit Accounting for a return of merchandise for a store credit is almost the same as in the case of a cash refund. Cash refund to a customer who returned a product that was purchased. Purchase of baking equipment on credit.

The company may return the merchandise to their inventory by debiting Merchandise Inventory and crediting COGS. Rather than refunding a customer with cash you might credit merchandise at your business. Sales Returns and Allowances Cash 1500 600 Estimated Returns Inventory Merchandise Inventory.

Debit Sales Revenue and credit Inventory B. Which of the following represents. Paid Brauns Wholesale Supply in full less discount.

Unless a customer has been clearly informed by a poster or other appropriate notice placed at the point of display or at the cash register or at the store entrance that all sales are final and that goods arent returnable a customer who has paid for an item can return the item within ten business days from the date of purchase. The merchandise originally cost 480 and was sold to the customer for 780 cash. Received collections in full less discounts from customers billed on sales of 2100 on May 2.

Accounting for a purchase return with store credit is similar to a cash refund.

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