The Journal Entry to Record a Return of Merchandise Purchased

question 213

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 Revenue.
• D) Inventory.

---

Definitions:

Work Effect

The impact on labor supply and productivity due to changes in economic policies or conditions.

Basic Assumption

An underlying principle or idea that is accepted as true without proof, forming the basis for further reasoning or behavior.

Level Of Investment

The amount of spending by businesses on capital goods, such as factories and machinery, which can influence economic growth.

Keynes

Refers to John Maynard Keynes, an economist famous for his ideas that in times of low demand, public sector investments are critical to economic stability and growth.