Perdisco Practice Set (1 Viewer)

[BFF]

Does everyone know this is due in a week?

Can anyone help me I am having trouble with transaction on customer returns.

I am having trouble accounting for this,

Customer returns 5 surfboards originaly sold for $420 each. These items cost $280 and not faulty or damaged. Issued credit note for $2100.

 

[Loz_metalhead]

Does everyone know this is due in a week?

Can anyone help me I am having trouble with transaction on customer returns.

I am having trouble accounting for this,

Customer returns 5 surfboards originaly sold for $420 each. These items cost $280 and not faulty or damaged. Issued credit note for $2100.

Dr Sales returns and allowances 2100
Cr Accounts receivable 2100

Check your course outline or there should be info about it on webct vista. Goodluck

 

[BFF]

Thanks for that but then how and where do we adjust the inventory and COGS. Do we just adjust the entries and do we change the inventory cards or special journals/subsidiary ledgers
.

 

[Loz_metalhead]

That should be correct. You don't adjust the COGS and inventory.

Had the sale already been recorded?

I'm pretty sure thats all I did last year.

 

[BFF]

The sale had been recorded.

Im just thinking as it said they were returned not faulty and damaged so they could be resold?

 

[Loz_metalhead]

Yeh they could be resold but the way I learnt it, you do not Cr COGS. If you do a quick google search it comes up with the same transaction.