The Journal Entry to Record a Return of Merchandise Purchased

question 177

Multiple Choice

The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit

• A) Accounts Payable.
• B) Purchase Returns and Allowances.
• C) Sales.
• D) Merchandise Inventory.

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Definitions:

Tangible Products

Goods that have a physical form and can be touched, such as electronics, furniture, and vehicles.

Intangible Products

Goods that cannot be touched, measured, or physically counted, typically services or digital items.