Under the perpetual inventory system,the entry to record a purchase return would include a credit to which account?
A)Merchandise Inventory
B)Purchases Returns and Allowances
C)Accounts Payable
D)Sales

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, when a purchase return occurs, the Merchandise Inventory account is credited to reduce the inventory balance because the goods are no longer in inventory.

Under the Perpetual Inventory System,the Entry to Record a Purchase