Returned Merchandise for Credit on Account

question 22

Multiple Choice

Returned merchandise for credit on account. The perpetual inventory system is in use. This will be recorded with:

• A) a debit to a liability and a credit to an expense.
• B) a debit to an asset and a credit to an expense.
• C) a debit to a liability and a credit to an asset.
• D) a debit to an expense and a credit to a liability.

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Definitions:

Storage Capacity

The maximum amount of data that can be stored in a storage device or medium.

USB 3.1

A version of the Universal Serial Bus standard for technology that offers significantly faster transfer rates than its predecessor, USB 3.0.

Removable Storage

Portable devices or media that allow users to transfer data between computers without requiring a permanent connection.

Digital Data

Information stored in a digital format, utilizing binary code of ones and zeroes, allowing for efficient storage, processing, and transmission.