The journal entry to record the return of a purchase of inventory under the periodic system includes a:

A) debit to Sales.
B) credit to Purchases Returns and Allowances.
C) credit to Merchandise Inventory.
D) credit to Sales.

Periodic System

An inventory accounting system where goods are physically counted at the end of a specific period to determine the cost of goods sold and ending inventory.

Purchases Returns and Allowances

Refers to a reduction in the cost of purchases due to items being returned or allowances provided by the seller for damaged or unsatisfactory goods.

Merchandise Inventory

Goods that a company holds for the purpose of sale to customers in the ordinary course of business.