C Fong Returned $200 of Merchandise Within the Discount Period

question 79

Multiple Choice

C. Fong returned $200 of merchandise within the discount period. The entry to record the return is

• A) debit to Inventory for $200, credit Accounts Payable for $200.
• B) debit to Inventory for $200, credit Cost of Goods Sold for $200.
• C) debit to Accounts Payable for $200, credit Inventory for $200.
• D) debit to Accounts Payable for $200, credit Cash for $200.

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Definitions:

Cooperatives

An organization owned and operated by a group of individuals for their mutual benefit, where members share in the decision-making process and profits.

Limited Liability

A legal principle that limits an investor's loss in a business venture to the amount of capital invested, protecting personal assets from business debts and obligations.

Tax-Exempt Status

A designation that exempts specific entities or income from tax under federal or state laws.

Personal Assets

Items of value owned by an individual, including both tangible and intangible assets, such as cash, property, investments, and intellectual property.