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Dec 4: p Dec 23: Ceres Computer Sales company uses the perpetual inventory system. It records...

Dec 4: p

Dec 23:

Ceres Computer Sales company uses the perpetual inventory system. It records the selling price of merchandise returns by customers in a Sales returns and allowances account. Prepare the general journal entries to record the following merchandise sales transactions that occurred in the month of December.

Dec 1: sold merchandise on credit

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Answer #2

Answer-If we are selling goods on credit then journal entry for this will be:-

Date Account Title and Explanation Debit Credit
Account Receivable -
Sales Revenue -
(To record sold merchandise on credit)

Sales Returns and Allowances Journal Entries

For credit sales or sales on account, the amount is removed from the receivable balance by crediting the customer's account:

Date    Account Title and Explanation Debit    Credit
Sales Returns and Allowances xx.xx
Accounts Receivable xx.xx
(To record merchandise inventory return)
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