A Purchase Return of Goods Purchased on Credit Is Recorded

question 52

Multiple Choice

A purchase return of goods purchased on credit is recorded by the purchasing firm as a debit to what account?

• A)Inventory
• B)Cost of sales
• C)Accounts payable
• D)Accounts receivable

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Definitions:

Total Revenue

The complete amount of income generated by the sale of goods and services before any expenses are deducted.

Unit Elastic

A situation in economics where a percentage change in price causes an equal percentage change in quantity demanded or supplied.

Elasticity

A measure in economics of how much the quantity demanded or supplied of a good changes in response to changes in its price or other factors.

Substitutes Available

Products or services that can be used in place of one another, providing consumers with choices in the marketplace.