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

question 94

Multiple Choice

Using a perpetual inventory system,the entry to record the return of inventory previously purchased on account includes a:

• A)Debit to Cost of Goods Sold.
• B)Debit to Inventory.
• C)Debit to Accounts Payable.

---

Definitions:

Processing Delay

The time taken between the initiation and completion of a process, often referring to the time before a transaction or operation is executed.

BAT Model

A bargaining tool or theory used in negotiation that stands for the Best Alternative To a negotiated agreement.

Marketable Securities

Financial instruments that can be quickly converted into cash at a reasonable price.

Ledger Balance

The total balance of funds in an account at the beginning of each day, including all deposits and withdrawals that were posted from the previous night.