A Firm Using the Perpetual Inventory Method Returned Defective Merchandise

question 73

Multiple Choice

A firm using the perpetual inventory method returned defective merchandise costing $2,000 to one of its suppliers. The entry to record this transaction will include a credit to

• A) Accounts Receivable
• B) Inventory
• C) Purchase Returns
• D) Accounts Payable

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Definitions:

Oedipus Complex

A psychoanalytic theory proposed by Freud that describes a child's feelings of desire for the opposite-sex parent and jealousy and rivalry with the same-sex parent.

Impulsiveness

A tendency to act on spontaneous desires without considering the consequences.

Superego

Part of Sigmund Freud's psychoanalytic theory, representing the ethical or moral self that counters the impulses of the id.

Ego

In psychoanalytic theory, the part of the personality that mediates the demands of the id, superego, and reality.