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:

FDIC

The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and thrift institutions.

Bank Deposits

Money placed into banking institutions for safekeeping. These deposits are typically made into checking or savings accounts.

Bank Failures

Occurrences when banks are unable to meet their obligations to depositors and others, often leading to insolvency and closure.

Store of Value

A function of money allowing individuals to preserve purchasing power for future use.