Chancellor Company Purchased Merchandize Worth $900 on Credit,terms N/30 and Returned

question 62

Multiple Choice

Chancellor Company purchased merchandize worth $900 on credit,terms n/30 and returned merchandize worth $100 on next day.What is the required journal entry to record the merchandize returns under the periodic inventory system?

• A)
• \(\begin{array}{lll}
• \text { Accounts Payable }&100 \\
• \text { Purchases Returns and Allowances }&&100
• \end{array}\)
• B)
• \(\begin{array}{lll}
• \text { Accounts Payable } &100\\
• \text { Merchandize Inventory }&&100
• \end{array}\)
• C)
• \(\begin{array}{lll}
• \text { Merchandize Inventory } &100\\
• \quad \text { Purchases Returns and Allowances }&&100
• \end{array}\)
• D)
• \(\begin{array}{lll}
• \text { Purchases Returns and Allowances } &100\\
• \quad \text { Merchandize Inventory }&&100
• \end{array}\)

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