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

question 4

Multiple Choice

Under a perpetual inventory system, the entry to record the return of inventory sold on account for $360 with a cost of $210 would be recorded by the seller as a:

• A)credit to Accounts Receivable for $210.
• B)credit to Sales Returns and Allowances for $210.
• C)debit to Sales Revenue for $360.
• D)debit to Inventory for $210.

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