Under a Perpetual Inventory System, the Entry to Record the Return

question 109

Multiple Choice

Under a perpetual inventory system, the entry to record the return of inventory sold on account for $250 with a cost of $185 would be recorded by the seller as a:

• A)debit to Accounts Receivable for $250.
• B)debit to Sales Returns and Allowances for $185.
• C)credit to Sales Revenue for $250.
• D)credit to Cost of Goods Sold for $185.

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Definitions:

Conquistadors

Spanish explorers and soldiers who participated in the conquest of the Americas in the 16th century, often for gold, glory, and the spread of Christianity.

Mexica

Refers to the indigenous people who were the rulers of the Aztec Empire, centered in what is now Mexico City, before the Spanish conquest in the 16th century.

New Spain

Refers to a territorial entity of the Spanish Empire in North America, Central America, Asia, and Oceania, from the 16th to the 19th century.