Asked by Feisty Mochi on Jul 19, 2024
Verified
Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a
A) credit to Customer Refunds Payable
B) debit to Inventory
C) credit to Inventory
D) debit to Cash
Perpetual Inventory System
Inventory accounting method that uses computerized point-of-sale and enterprise asset management software to immediately track sales or purchases of inventory.
Customer Refunds Payable
A liability account representing the amount of money owed to customers for the return of goods or dissatisfaction with services provided.
Credit To Inventory
An accounting entry that increases the total value of inventory held by a company, reflecting additions or corrections to stock.
- Understand the methodology of documenting sales and returns operations within the context of a perpetual inventory system.
Verified Answer
Learning Objectives
- Understand the methodology of documenting sales and returns operations within the context of a perpetual inventory system.
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