Under the Perpetual Inventory System,the Entry to Record a Purchase

question 42

Multiple Choice

Under the perpetual inventory system,the entry to record a purchase return would include a credit to which account?

• A)Merchandise Inventory
• B)Purchases Returns and Allowances
• C)Accounts Payable
• D)Sales

---

Definitions:

Bushel

A unit of volume that is used mainly for agricultural products, such as grains and fruits, equivalent to approximately 36.4 liters in the United States.

Consumption

The use of goods and services by households or individuals, constituting one of the key concepts in economics.

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and any other income earned as compensation for labor services.

Lump Sum Payment

A one-time payment for the total amount due, rather than breaking it down into multiple payments over time.