Which of the Following Is the Correct Journal Entry for a Return

question 152

Multiple Choice

Which of the following is the correct journal entry for a return of goods that were purchased on account under the periodic inventory system?

• A) \[\begin{array} { | l | l | l | }
• \hline \begin{array} { l }
• \text { Purchase Returns and } \\
• \text { Allowances }
• \end{array} & \chi \times & \\
• \hline \text { Accounts Payable } & & \chi \times \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | l | }
• \hline \text { Accounts Payable } & \chi \chi & \\
• \hline \text { Merchandise Inventory } & & \chi \chi \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Accounts Payable } & \chi \varnothing & \\
• \hline \begin{array} { l }
• \text { Purchase Returns and } \\
• \text { Allowances }
• \end{array} & & \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | l | }
• \hline \text { Merchandise Inventory } & \chi \chi & \\
• \hline \text { Accounts Payable } & & \chi \chi \\
• \hline
• \end{array}\]

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Definitions:

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half are below.

Mode

Can refer to a manner of doing something, a specific condition of operation, or the most frequently occurring value in a set of data.

Sampling

The process of selecting a subset of individuals, items, or data from a larger population to estimate characteristics of the whole population.

Correlation Analysis

A statistical method used to determine the degree to which two or more variables are related.