Returned Merchandise for Credit Under the Perpetual Inventory Method

question 47

Multiple Choice

Returned merchandise for credit under the perpetual inventory method. This will be recorded with:

• A) a debit to Accounts Payable and a credit to Sales Returns and Allowances.
• B) a debit to Sales Returns and Allowances and a credit to Merchandise Inventory.
• 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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