Customer returns goods for a cash refund, restocked (perpetual inventory)

Transaction

Yesterday a store sold merchandise for $450.00, paid in cash; the merchandise had cost the store $270.00. Today the customer returns all of it undamaged and receives a full cash refund. The merchandise goes back into inventory.

Assumptions: Perpetual inventory: each sale also records its cost of goods sold. Returns are recorded in Sales Returns and Allowances, not by debiting Sales Revenue. No sales tax applies to this sale.