The Journal Entry to Record the Return of a Purchase

question 24

Multiple Choice

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

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

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Definitions:

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population, often used in the calculation of confidence intervals.

Fill Weights

The predetermined or measured weights of product that fill a container or package.

Standard Deviation

An indicator showing how much a group of values diverges or spreads out.

Finite Population Correction Factor

A factor applied to the calculation of standard errors when sampling from a finite population to adjust for the sample size relative to the population size.