now prepare the entry to update the merchandise inventory account for the cost of the returned…

now prepare the entry to update the merchandise inventory account for the cost of the returned merchandise—cost of goods returned, $100 date accounts debit credit jan 8

now prepare the entry to update the merchandise inventory account for the cost of the returned merchandise—cost of goods returned, $100 date accounts debit credit jan 8

Answer

Explanation:

Step1: Identify the accounts affected

When merchandise is returned, the Merchandise Inventory account increases (is debited) and the Cost of Goods Sold account decreases (is credited).

Step2: Record the amounts

The cost of goods returned is $100, so we debit Merchandise Inventory for $100 and credit Cost of Goods Sold for $100.

Date Accounts Debit Credit
Jan 8 Merchandise Inventory $100
Cost of Goods Sold $100

Answer:

Date Accounts Debit Credit
Jan 8 Merchandise Inventory $100
Cost of Goods Sold $100