Under the perpetual inventory system,in addition to making the entry to record a sales return,a company would
A)increase Merchandise Inventory and decrease Cost of Goods Sold.
B)increase Cost of Goods Sold and decrease Purchases.
C)increase Cost of Goods Sold and decrease Merchandise Inventory.
D)make no additional entry until the end of the period.

Question

Quizplus · Accepted Answer

When a company records a sales return under the perpetual inventory system, it increases Merchandise Inventory and decreases Cost of Goods Sold to reflect the return of goods to inventory and the reversal of the cost associated with the sale.

Under the Perpetual Inventory System,in Addition to Making the Entry