AquaMarine Company uses the perpetual inventory system. It returned some merchandise and received credit memorandum of $18,000. Which of the following journal entries records this transaction?
A) A debit to Merchandise Inventory of $18,000, a credit to Accounts Payable of $18,000
B) A debit to Accounts Payable of $18,000, a credit to Merchandise Inventory of $18,000
C) A debit to Accounts Payable of $18,000, a credit to Purchase Return and Allowances of $18,000
D) A debit to Purchase Return and Allowances of $18,000, a credit to Accounts Payable of $18,000
Correct Answer:
Verified
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