A Company That Uses a Perpetual Inventory System Purchased Inventory $$\begin{array} { | c | r | r | } \hline \text { Purchase Returns } & 100 & \\\hline \text { Accounts Payable } & & 100 \\\hline\end{array}$$

question 256

Multiple Choice

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $100 to the vendor. Which of the following would be the correct journal entry to record these returns?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Purchase Returns } & 100 & \\
• \hline \text { Accounts Payable } & & 100 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 100 & \\
• \hline \text { Purchase Returns } & & 100 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 100 & \\
• \hline \text { Accounts Payable } & & 100 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 100 & \\
• \hline \text { Merchandise Inventory } & & 100 \\
• \hline
• \end{array}\]

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Definitions:

Recount

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Andrew Johnson

The 17th President of the United States, who served from 1865 to 1869, significant for his turbulent presidency and impeachment after the American Civil War.

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The 42nd President of the United States who served from 1993 to 2001.