Using a periodic inventory system, the seller's journal entry to record the return, by the buyer, of merchandise purchased on account includes a:
A) Credit to Purchases Returns
B) Debit to Sales Returns and Allowances
C) Debit to Accounts Receivable
D) Credit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a periodic inventory system, when a buyer returns merchandise to the seller, the following entry is made by the seller:
Sales returns and allowances XXX
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Accounts receivable XXX

Using a Periodic Inventory System, the Seller's Journal Entry to Record