Under the Perpetual Inventory System, in Addition to Making the Entry

question 3

Multiple Choice

Under the perpetual inventory system, in addition to making the entry to record a return of goods from a customer, a company would:

• A) debit Merchandise Inventory and credit Cost of Goods Sold.
• B) debit Cost of Goods Sold and credit Merchandise Inventory.
• C) debit Sales and credit Cost of Goods Sold.
• D) debit Purchases and credit Cost of Goods Sold.

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Definitions:

Vertex

A point where two or more curves, edges, or lines meet, often used to describe the corner point of a polygon or the peak or trough of a parabola.

Parabola

A symmetric curve formed by the intersection of a cone with a plane parallel to a straight line, generatrix, of the cone.

Initial Velocity

The velocity of an object at the start of a time interval.

Coin

A piece of metal, usually flat and circular, authorized by a government for use as money.