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

question 183

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 Sales Returns and Allowances
• B) debit to Merchandise Inventory
• C) credit to Merchandise Inventory
• D) debit to Cost of Merchandise Sold

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Definitions:

Marketing Actions

A set of strategies implemented by a company to promote and sell its products or services.

Customer Needs

The wants and preferences that consumers have regarding a product or service that drive their buying behavior.

Market Share

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Wants and Needs

Essential drivers of consumer behavior; needs are basic requirements for survival, while wants are desires for specific satisfiers of these needs.