Returned Merchandise Paid for Within the Discount Period for Cash

question 66

Multiple Choice

Returned merchandise paid for within the discount period for cash. The perpetual inventory system is in use. This return will be recorded with:

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

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Definitions:

Unreal

Something that is not real or exists only in the imagination; not existing in physical or tangible form.

Obsessive-Compulsive Disorder

A mental disorder characterized by intrusive thoughts (obsessions) and repetitive behaviors (compulsions) performed to alleviate anxiety.

Irresistible Urges

Compelling desires or impulses that are difficult to control or resist.