To Record a Return of Merchandise Purchased on Credit on the Books

question 94

Multiple Choice

To record a return of merchandise purchased on credit on the books of the buyer, the accountant would:

• A)debit Purchases and credit Purchases Returns and Allowances.
• B)debit Purchases Returns and Allowances and credit Accounts Receivable.
• C)debit Purchases Returns and Allowances and credit Purchases.
• D)debit Accounts Payable and credit Purchases Returns and Allowances.

Recognize the appropriate use of specialized networks and social media in business.

Comprehend the guidelines for completing professional and clear email messages.

Identify effective strategies for communication within social networks.

Distinguish between different modes of electronic communication and their appropriate business uses.

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Definitions:

Reasonable Degree

A reasonable degree refers to an acceptable level of certainty or accuracy, often used to describe the precision expected in estimates or judgments.

Revenue Recognition

Accounting principle that outlines the specific conditions under which revenue is recognized and dictates how to account for it on the financial statements.

Substantially Completes

A phrase indicating that a project or task is nearly finished or that a significant portion of the work has been accomplished.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.