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:

Recognized Profession

Refers to occupations that are formally acknowledged and regulated by legal or professional bodies.

Emerging Profession

A new or developing field of work that is becoming recognized as a specialized area of practice or expertise.

Insurance Agents

Professionals who sell, solicit, and negotiate insurance policies on behalf of insurers, providing advice to buyers and managing the policy.

Proper Coverage

Adequate insurance protection or the extent to which insurance policies meet the insured's needs.