On October 1, Robertson Company Sold Merchandise in the Amount

Multiple Choice

On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, 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, Alberts returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Robertson must make on October 4 is:

A) $$\begin{array} { | c | r | r | } \hline \text { Sales Returns and Allowances } & 500 & \\\hline \text { Accounts Receivable } & & 500 \\\hline \text { Merchardise Irventory } & 350 & \\\hline \text { Cost of Goods Sold } & & 350 \\\hline\end{array}$$
B) $\begin{array}{|c|r|r|}\hline \text { Sales Returns and Allowances } & 500 & \\\hline \text { Accounts Receivable } & & 500 \\\hline\end{array}$
C) $\begin{array}{|c|r|r|}\hline \text { Accounts Receivable } & 500 & \\\hline \text { Sales Returns and Allowances } & & 500 \\\hline\end{array}$
D) $\begin{array}{|c|r|r|}\hline \text { Accounts Receivable } & 500 & \\\hline \text { Sales Returns and Allowances } & & 500 \\\hline \text { Cost of Goods Sold } & 350 & \\\hline \text { Merchandise Inventory } & & 350 \\\hline\end{array}$
E) $\begin{array}{|c|r|r|}\hline \text { Sales Returns and Allowances } & 350 & \\\hline \text { Accounts Receivable } & & 350 \\\hline\end{array}$