The Journal Entry to Record the Return of a Purchase

question 69

Multiple Choice

The journal entry to record the return of a purchase of inventory under the periodic system includes a:

• A)debit to Merchandise Inventory.
• B)credit to Purchases Returns and Allowances.
• C)credit to Merchandise Inventory.
• D)credit to Purchases.

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Definitions:

Negative Terminal

The terminal of an electrical device (such as a battery) through which current flows out, typically regarded as the source of electrons.

Cathode

The negative terminal of an electric device.

Lead-acid Batteries

A type of rechargeable battery that uses lead peroxide and sponge lead, employing a sulfuric acid electrolyte.

Electrolyte

A substance that produces an electrically conducting solution when dissolved in a polar solvent, such as water, facilitating the flow of electric charge.