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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Definitions:

Evolutionary Theorizing

The application of concepts from evolutionary biology to understand the development and behavior of organisms, including humans, highlighting the role of adaptation and natural selection.

Empirical Test

A method of examination or experimentation used to validate hypotheses and theories through objective evidence and observation.

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An organized pattern of social relationships and social institutions that compose a society, guiding and constraining individual behaviors.

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The habitual patterns or ways in which individuals tend to act or behave based on their personality or experiences.