On Jan 5, a customer returned merchandise that had been purchased earlier on credit. The original sale was for $500, and the cost to the seller was $150. Demonstrate the required journal entry to record the return on the books of the seller, assuming the goods can be sold to another customer.

The journal entry for this returned purchase is as follows;

Dr. Sales Returns and Allowances $500

Dr. Merchandise Inventory $150

Cr. Accounts Receivable $500

Cr. COGS $150

Explanation:

The sales account is the revenue of the good/item purchased. The merchandise inventory is a type of an assets. The journal entry is important to a business so that they can track expenses incurred for the returned item. A new entry will need to be made when a new sale is made.

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: