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Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition
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Can you please post the question the instructor gave you?
Issued debit memo number DM601 for $6880 and returned for credit, to Kawaski USA, one jet ski. The body of the jet ski was damaged during shipping. Kawasaki has agreed to accept the return. there are no freight charges. The AU150 was part of the June 6 purchase on account ( invoice K4461). Only one entry is required to properly record this transaction.
When the customer returns the merchandise to you:
Debit Merchandise Inventory
Credit Cash (or Accounts Receivables- if the sale was on credit)
When you return the item to the merchant:
Debit Accounts Payable
Credit Merchandise Inventory