A Company Using a Perpetual Inventory System That Returns Goods

question 86

Multiple Choice

A company using a perpetual inventory system that returns goods purchased on credit would

• A) debit Accounts Payable and credit Inventory.
• B) debit Sales and credit Accounts Payable.
• C) debit Cash and credit Accounts Payable.
• D) debit Accounts Payable and credit Purchases.