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natima [27]
3 years ago
11

On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, with credit terms of 2/10, n/30. The cost of

the items sold is $4,000. Robertson uses the periodic inventory system. On October 4, Alberta returns some of the inventory. The selling price of the inventory is $500 and the cost of the inventory returned is $350. What journal entry (entries) will be recorded by Robertson October 4?
Business
1 answer:
Ira Lisetskai [31]3 years ago
3 0

Answer:

<u><em>October 4</em></u>

Inventory $350 (debit)

Cost of Sales $350 (credit)

<em>Being Recognition of Inventory and de-recognition of cost of sale</em>

Revenue $500 (debit)

Trade Receivable $500 (credit)

<em>Being de-recognition of Revenue and Trade Receivables.</em>

Explanation:

The Entries that Robertson Company should enter for the 2 dates are as follows :

<u><em>October 1</em></u>

Cost of Sales  $4,000 (debit)

Inventory $ 4,000 (credit)

<em>Being Recognition of Cost of Goods Sold</em>

Trade Receivable $5,800 (debit)

Revenue $5,800 (debit)

<em>Being Recognition of Revenue</em>

<u><em>October 4</em></u>

Inventory $350 (debit)

Cost of Sales $350 (credit)

<em>Being Recognition of Inventory and de-recognition of cost of sale</em>

Revenue $500 (debit)

Trade Receivable $500 (credit)

<em>Being de-recognition of Revenue and Trade Receivables.</em>

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