A Company Uses the Periodic Inventory Method

question 148

Multiple Choice

A company uses the periodic inventory method.Which of the following entries would be made to record a return of $200 of inventory purchased on account?

• A) The accounting entry would be a $200 debit to Purchase returns and allowances and a $200 credit to Accounts payable.
• B) The accounting entry would be a $200 debit to Accounts payable and a $200 credit to Purchase returns and allowances.
• C) The accounting entry would be a $200 debit to Purchases and a $200 credit to Accounts payable.
• D) The accounting entry would be a $200 debit to Accounts payable and a $200 credit to Purchases.

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Definitions:

Observational Learning

A type of learning that occurs through observing the actions of others, understanding the consequences, and mimicking or avoiding the behavior accordingly.

Operant Conditioning

A system of training where the force of a behavior is changed through reward or punishment.

Change Channels

The action of switching or modifying pathways or methods, often used in the context of media consumption or management strategies.

Instinctive Drift

The tendency of an animal to revert to instinctual behaviors that interfere with a conditioned response.