Using a Perpetual Inventory System,what Is the Correct Journal Entry

question 8

Multiple Choice

Using a perpetual inventory system,what is the correct journal entry when a customer returns a product that was purchased on account?

• A) A debit to Sales Returns & Allowances and a credit to Accounts Receivable; and a debit to Inventory and a credit to Cost of Goods Sold
• B) A debit to Cash and a credit to Sales Returns & Allowances; and a debit to Inventory and a credit to Cost of Goods Sold
• C) A debit to Accounts receivable and a credit to Sales Returns & Allowances; and a debit to Cost of Goods Gold and a credit to Inventory
• D) A debit to Sales Returns & Allowances and a credit to Accounts Receivable

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Child Labor

Refers to the employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially, or morally harmful.

Regulating Commerce

The act of governing or controlling business practices, trade, and economic transactions through laws and regulations to ensure fairness, competition, and consumer protection.

Central Government

The national government of a federated state, possessing ultimate governmental authority over the entire country.

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