The Entry to Record Returned Merchandise to Vans Company Is

question 38

Multiple Choice

The entry to record returned merchandise to Vans Company is:

• A)debit Purchases Returns and Allowances; credit Accounts Payable in the general ledger.
• B)debit Accounts Payable; credit Purchases.
• C)debit Accounts Payable/Vans Company in the accounts payable subsidiary ledger and debit Accounts Payable in the general ledger; credit Purchases Returns and Allowances.
• D)debit Purchases; credit Accounts Payable.

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Definitions:

Consumer Income

The total earnings of consumers, which determines their purchasing power and ability to consume goods and services.

Jewelry

Decorative items worn for personal adornment, such as rings, necklaces, earrings, and bracelets, which are often made from valuable materials.

Cross Elasticity of Demand

An indicator of the responsiveness in the demand for a certain good to shifts in the price of a different good, demonstrating how substitutable or complementary these two goods are to one another.

Complementary Products

Goods that are consumed together, where the use or consumption of one product increases the demand for another.