Asked by Betty ty_re on Jun 13, 2024
Verified
Using a perpetual inventory system, the entry to record the return of merchandise purchased on account includes a
A) debit to Cost of Goods Sold
B) credit to Accounts Payable
C) credit to Inventory
D) credit to Sales
Perpetual Inventory System
An inventory management method where inventory quantities and costs are updated continuously with each sale or purchase.
Accounts Payable
Liabilities of a business that are owed to creditors for goods and services purchased on credit.
Credit To Inventory
An accounting entry that increases the inventory asset account due to purchases on credit.
- Familiarize oneself with the procedures for logging sales and return transactions in a perpetual inventory framework.
Verified Answer
Learning Objectives
- Familiarize oneself with the procedures for logging sales and return transactions in a perpetual inventory framework.
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