Returned Merchandise Under the Periodic Inventory Method

question 36

Multiple Choice

Returned merchandise under the periodic inventory method. This will be recorded with:

• A) a debit to Accounts Payable and a credit to Purchases Returns and Allowances.
• B) a debit to Merchandise Inventory and a credit to Cash.
• C) a credit to Accounts Payable and a debit to Merchandise Inventory.
• D) a debit to Accounts Payable and a credit to Merchandise Inventory.

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Definitions:

Expenditure

The amount of money spent by an individual, organization, or government on goods and services.

GDP

GDP, or Gross Domestic Product, measures a country's economic output in terms of the total value of all goods and services produced within its borders in a specific time period.

Microeconomics

The study of how households and firms make decisions and how they interact in markets.

Macroeconomics

The branch of economics that studies the behavior and performance of an economy as a whole, including topics such as growth, inflation, and unemployment.