Returned Merchandise for Credit on Account

question 120

Multiple Choice

Returned merchandise for credit on account.The perpetual inventory system is in use.This will be recorded with:

• A)a debit to a liability and a credit to an expense.
• B)a debit to an asset and a credit to an expense.
• C)a debit to a liability and a credit to an asset.
• D)a debit to an asset and a credit to a liability.

---

Definitions:

Full Production

The level of production where a company uses all its resources efficiently.

Unemployment Rate

The part of the labor force that is without employment but is actively interested in finding a job.

Full Employment

An economic situation in which all available labor resources are being used in the most economically efficient way.

Production Possibilities Curve

The potential total output combinations of any two goods for an economy.