A Merchandiser Returned Inventory Worth $2,000 That Was Purchased on Account

question 129

Multiple Choice

A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include:

• A)a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000.
• B)a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances.
• C)a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000.
• D)a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000.

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Definitions:

Atlanta

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