If a Company Records Merchandise It Returns to Suppliers in the General

question 53

Multiple Choice

If a company records merchandise it returns to suppliers in the general journal then

• A) a posting must be made only to the accounts payable control account.
• B) a posting must be made only to the accounts payable subsidiary ledger account.
• C) a dual posting must be made.
• D) there will be a debit to Inventory.

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Definitions:

Perfectly Elastic Demand

Perfectly elastic demand is a market scenario where the demand for a product can drastically change (increase or decrease) at the slightest change in price, essentially to infinity.

Patents

Legal documents granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Innovation Incentives

Mechanisms or policies designed to encourage the development and implementation of new ideas, products, or methodologies.

Monopoly Power

The degree of control a company has over a market, enabling it to set prices or exclude competition.