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:

Bicuspids

Also known as premolars, these are types of teeth located between the canine and molar teeth in the human dentition, primarily involved in crushing and grinding food.

Canines

Pointed teeth located between the incisors and premolars, used for tearing food.

Pharynx

The muscular tube that connects the mouth and nasal passages to the esophagus and larynx; part of the throat.

Gallbladder

A small organ beneath the liver that stores bile, which is used in the digestion of fats.