A Retailer Using a Periodic Inventory System Returned $3,000 of Defective

question 125

Multiple Choice

A retailer using a periodic inventory system returned $3,000 of defective inventory which was purchased on account from one of its wholesale suppliers.The entry to record this transaction on the retailer's books would include a debit to:

• A) Accounts Receivable.
• B) Cost of Goods Sold.
• C) Accounts Payable.
• D) Inventory.

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Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal wear and tear, for its intended purpose.

Differentiation Value

The unique value that a product or service offers to distinguish it from its competitors, enhancing its appeal to consumers.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit from the investment divided by its cost.

Selling Price

The price at which a product or service is offered to customers for purchase.