A Company That Uses a Perpetual Inventory System Purchased Inventory $$\begin{array} { | c | r | r | } \hline \text { Purchase Returns } & 500 & \\\hline \text { Accounts Payable } & & 500 \\\hline\end{array}$$

question 129

Multiple Choice

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $500 to the vendor.Which of the following would be the correct journal entry to record these returns?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Purchase Returns } & 500 & \\
• \hline \text { Accounts Payable } & & 500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 500 & \\
• \hline \text { Purchase Returns } & & 500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Merchandise Inventory } & 500 & \\
• \hline \text { Accounts Payable } & & 500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 500 & \\
• \hline \text { Merchandise Inventory } & & 500 \\
• \hline
• \end{array}\]

Delineate the classifications and the foundational documents of corporations.

Understand corporate governance, including the selection and duties of directors and officers, as well as their fiduciary duties.

Explain the structure and characteristics of a limited liability company (LLC).

Understand the doctrine of respondeat superior, vicarious liability, and apply these principles to specific scenarios.

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