If Merchandise Purchased on Credit Is Returned to the Seller

question 44

Multiple Choice

If merchandise purchased on credit is returned to the seller for a full refund,what would be the effect on the accounts listed below?

• A)Increase Inventory;No effect on Cost of Goods Sold;Decrease Accounts Payable.
• B)Decrease Inventory;Decrease Cost of Goods Sold;No effect on Accounts Payable.
• C)No effect on Inventory;Decrease Cost of Goods Sold;Decrease Accounts Payable.
• D)Decrease Inventory;No effect on Cost of Goods Sold;Decrease Accounts Payable.