A Company Using a Perpetual Inventory System That Returns Goods

question 46

Multiple Choice

A company using a perpetual inventory system that returns goods purchased on credit would

• A)debit Accounts Payable and credit Inventory.
• B)debit Sales and credit Accounts Payable.
• C)debit Cash and credit Accounts Payable.
• D)debit Accounts Payable and credit Purchases.

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Definitions:

Moving Magma

The flow of molten rock beneath or on the Earth’s surface, which can create volcanic eruptions when it reaches the surface.

Indonesian Earthquake

A seismic event occurring in Indonesia, a region prone to earthquakes due to its position on the Pacific Ring of Fire.

Indian Ocean

The world's third-largest ocean, bounded by Asia, Africa, and Australia, known for its significant impact on climate and weather patterns.

Eastern Coast

The area where the land meets the ocean on the eastern side of a landmass.