Under the perpetual inventory system, the journal entries to

Under the perpetual inventory system, the journal entries to record sales returns (the original sale was on account) would be:

A)
Accounts Payable XX
Merchandise Inventory XX

Merchandise Inventory XX
Cost of Goods Sold XX

B)
Cost of Goods Sold XX
Merchandise Inventory XX

Merchandise Inventory XX
Accounts Payable XX

C)
Accounts Receivable XX
Sales XX

Sales XX
Cost of Goods Sold XX

D)
Sales Returns and Allowances XX
Accounts Receivable XX

Merchandise Inventory XX
Cost of Goods Sold XX

ANSWER

D