When the Periodic Inventory Method Is Used, the Entry to Record

question 18

Multiple Choice

When the periodic inventory method is used, the entry to record a return of defective merchandise to a supplier would include a

• A) Credit to Accounts Payable
• B) Credit to Inventory
• C) Credit to Purchase Returns
• D) Credit to Cash

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unachievable.

Elastic

Describes a situation in which the demand or supply for a good or service significantly changes in response to a change in price.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium outcome is not achieved due to market distortion, such as taxes or subsidies, leading to a reduction in total welfare.

Vacationing Abroad

The act of traveling to another country for leisure, exploration, or relaxation purposes.