Under the Perpetual Inventory System,in Addition to Making the Entry

question 45

Multiple Choice

Under the perpetual inventory system,in addition to making the entry to record a sales return,a company would

• A)increase Merchandise Inventory and decrease Cost of Goods Sold.
• B)increase Cost of Goods Sold and decrease Purchases.
• C)increase Cost of Goods Sold and decrease Merchandise Inventory.
• D)make no additional entry until the end of the period.

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Definitions:

Additional Funds

Extra money required or available beyond what was originally budgeted or expected.

Filiform Papillae

Thin, thread-like structures on the tongue's surface involved in sensation rather than taste.

Fungiform Papillae

Mushroom-shaped structures on the tongue, containing taste buds that are responsible for sensing sweet, sour, salty, and bitter tastes.

Circumvallate Papillae

Large taste buds located at the back of the tongue involved in the sensation of taste.