The Journal Entry to Record the Return of a Purchase

question 69

Multiple Choice

The journal entry to record the return of a purchase of inventory under the periodic system includes a:

• A)debit to Merchandise Inventory.
• B)credit to Purchases Returns and Allowances.
• C)credit to Merchandise Inventory.
• D)credit to Purchases.

---

Definitions:

Alfred P. Sloan

An American industrialist who served as president and CEO of General Motors Corporation, significantly influencing the auto industry and corporate management practices.

Model T

An iconic affordable automobile produced by Ford Motor Company from 1908 to 1927, revolutionizing transportation and American industry.

General Motors

An American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures, markets, and distributes vehicles and vehicle parts.

Electric Car

A vehicle that is propelled by one or more electric motors, using energy typically stored in rechargeable batteries.