Davis Hardware Company Uses a Perpetual Inventory System $$\begin{array} { l c } \text { Inventory } & 200 \\\text { Accounts Payable } & 200\end{array}$$

question 187

Multiple Choice

Davis Hardware Company uses a perpetual inventory system. How should Davis record the return of inventory previously purchased on account for $200?

• A) \[\begin{array} { l c }
• \text { Inventory } & 200 \\
• \text { Accounts Payable } & 200
• \end{array}\]
• B) \(\begin{array} { l l } \text { Accounts Payable } & 200 \end{array}\)
• Inventory
• 200
• C) \(\begin{array} { l l } \text { Purchase Returns } & 200 \end{array}\)
• Accounts Payable\(\quad 200\)
• D) Accounts Payable\(\quad 200\)
• Purchase Returns\(\quad 200\)

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Definitions:

Service Level Policy

A set of guidelines or standards that determine the quality and performance level of customer service operations.

Standard Deviation

A measure of the dispersion or variance in a set of values, indicating how much the values deviate from the mean.

Service Level

A measure of the quality of a service provided, often defined by the percentage of customer demands met.