Asked by Rothana Martaa on Jun 13, 2024
Verified
When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit
A) Inventory
B) Purchases Returns and Allowances
C) Accounts Payable
D) Accounts Receivable
Perpetual Inventory System
An automated inventory management system which promptly registers inventory transactions during sales or purchases through digital point-of-sale systems and enterprise asset management software.
Purchases Returns
Transactions involving the return of goods previously bought to the supplier, often due to defects, inaccuracies, or other reasons, leading to a refund or credit note.
Accounts Payable
Liabilities of a business that are owed to creditors for goods and services purchased on credit and are due within a short period, typically less than a year.
- Acquire knowledge on how the perpetual inventory system manages the documentation of sales and return activities.
Verified Answer
Learning Objectives
- Acquire knowledge on how the perpetual inventory system manages the documentation of sales and return activities.
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