Returned Merchandise for Credit Under the Perpetual Inventory Method

question 43

Multiple Choice

Returned merchandise for credit under the perpetual inventory method.This will be recorded with:

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

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values around the mean.

Capital Cost Allowance (CCA)

A tax deduction in certain jurisdictions for depreciation of property used in a business or for earning income.

Operating Cash Flow

The cash an organization generates from its normal business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow its operations.

Interest Expense

Cost incurred by an entity for borrowed funds, which may include payments on loans, bonds, and lines of credit.