Using a Perpetual Inventory System, the Entry to Record the Return

question 218

Multiple Choice

Using a perpetual inventory system, the entry to record the return from a customer of merchandise sold on account includes a

• A) credit to Customer Refunds Payable
• B) debit to Inventory
• C) credit to Inventory
• D) debit to Cash

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Definitions:

Distribution

The process by which goods or services are delivered from the producer or supplier to the end-user.

Opportunistic Infections

Infections that occur more frequently or are more severe in individuals with weakened immune systems, such as those with HIV.

Diagnosed

The identification of the nature of an illness or other problem by examination of the symptoms.

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), leading to a severe weakening of the immune system.