A merchandiser sold merchandise inventory on account. The jo

A merchandiser sold merchandise inventory on account. The journal entry to record sales allowances in the books of the merchandiser, using the perpetual inventory system would be:

A)
Sales Returns and Allowances XX
Accounts Receivable XX

B)
Merchandise Inventory XX
Sales Revenue XX

C)
Cost of Goods Sold XX
Sales Returns and Allowances XX

D)
Sales Returns and Allowances XX
Cash XX

ANSWER

A