A Company That Uses a Perpetual Inventory System Purchased Inventory

question 51

Multiple Choice

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $200 to the vendor. The journal entry to record these returns would be:

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Definitions:

Market System

A type of economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Resource Market

A market where resources (such as labor, capital, and raw materials) that are used to produce goods and services are bought and sold.

Product Market

The marketplace where final goods or services are traded between sellers and buyers.

Business Risk

The potential for financial loss in operating a business, arising from factors such as changes in market demand, costs, competition, and regulatory environment.