Multiple Choice
A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include:
A) a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000.
B) a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances.
C) a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000.
D) a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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