Best Value Furniture Uses the Periodic Inventory System to Account

question 88

Multiple Choice

Best Value Furniture uses the periodic inventory system to account for its inventory.It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage.Best Value would record the return by:

• A) debiting Accounts Payable,crediting Purchases
• B) debiting Sales Returns and Allowances,crediting Accounts Receivable
• C) debiting Accounts Payable,crediting Purchases Purchase Returns and Allowances
• D) debiting Purchase Returns and Allowances,crediting Accounts Payable

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Definitions:

Informal Communication System

Communication that takes place outside formal channels, often spontaneously or through social interactions.

Formal Organizations

Structured groups characterized by well-defined roles, regulations, and systems intended to achieve collective goals efficiently.

Synergy

The creation of a whole that is greater than the simple sum of its parts, often in a collaborative context.

Norming

A stage in team development where members establish norms and standards for behavior and work processes, leading to more cohesive and cooperative efforts.