A Sales Return in a Perpetual Inventory System Requires a

question 107

Multiple Choice

A sales return in a perpetual inventory system requires a

• A) debit to Merchandise Inventory and a credit to Accounts Payable.
• B) debit to Cost of Goods Sold and a credit to Merchandise Inventory.
• C) debit to Sales Revenue and a credit to Merchandise Inventory.
• D) debit to Sales Returns and Allowances and a credit to Accounts Receivable.

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Definitions:

Restricts Trade

Actions or policies implemented by governments or economic entities to limit or control the exchange of goods and services across borders.

Specialization of Production

The process in which individuals, firms, or countries focus on producing a limited range of goods or services to gain economies of scale or advantages by virtue of unique skills, resources, or technology.

Economic Wealth

The accumulation of valuable resources and assets, including money, property, and investments, that contribute to an individual's or nation's economic power and living standard.

Economic Freedom

The ability of individuals to make their own economic decisions, including the decisions to buy, sell, and produce, with minimal government intervention.