Answer:
Given that,
Merchandise sold = $10,200
Cost of goods sold = $5,700
Selling price of the returned merchandise = $840
Cost of the merchandise returned = $470
Therefore, the journal entry is as follows:
On March 15,
(i) Sales Returns and Allowances A/c Dr. $840
To Accounts Receivable $840
(To record the sales returned)
(ii) Inventory A/c Dr. $470
To Cost of Goods Sold A/c $470
(To record the cost of goods sold)
