The Entry to Record Returned Merchandise to Vine Company Is

question 35

Multiple Choice

The entry to record returned merchandise to Vine Company is:

• A) debit Merchandise Inventory; credit Accounts Receivable in the general ledger.
• B) debit Accounts Payable; credit Supplies.
• C) debit Accounts Payable/Vine Company in the accounts payable subsidiary ledger and debit Accounts Payable in the general ledger; credit Merchandise Inventory.
• D) debit Merchandise Inventory; credit Accounts Payable.

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Definitions:

Merchantable

A standard in sales law indicating that goods are fit for the ordinary purposes for which such goods are used.

Average, Fair

An assessment or rating that denotes something as being within an acceptable or middle range of quality or value.

Medium-Grade Quality

Describes products or materials that meet a standard of performance or durability that is considered average or moderate in comparison to others.

Breach of Warranty

The failure to fulfill the terms of a promise, guarantee, or warranty in a contract, leading to potential legal action for damages.