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

question 221

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) \[\begin{array} { | l | l | l | }
• \hline \begin{array} { l }
• \text { Purchase Returns and } \\
• \text { Allowances }
• \end{array} & \mathrm { XX } & \\
• \hline \text { Accounts Payable } & & \mathrm { XX } \\
• \hline
• \end{array}\]
• B) \(\begin{array}{|l|l|l|}
• \hline \text { Accounts Payable } & \text { XX } \\
• \hline \text { Merchandise Inventory } && \text { XX }\\
• \hline
• \end{array}\)
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Accounts Payable } & \mathrm { XX } & \\
• \hline \begin{array} { l }
• \text { Purchase Returns and } \\
• \text { Allowances }
• \end{array} & & \mathrm { XX } \\
• \hline
• \end{array}\]
• D) \(\begin{array}{|c|c|l|}
• \hline\text { Merchandise Inventory } & \text { XX } \\
• \hline \text { Accounts Payable } && \text { XX } \\
• \hline
• \end{array}\)

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Definitions:

Output

The quantity of goods or services produced within a given time frame by a firm, sector, or country.

Equilibrium Price

The market value at which there's a perfect match between quantity of goods available and quantity desired by buyers.

Cockatoos

A type of large, often colorful and noisy parrot native to Australia and surrounding islands.

Smuggled

Refers to the act of moving goods illegally into or out of a country, bypassing customs regulations and taxes.