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An Entry Debiting Accounts Payable and Crediting Purchase Returns and Allowances

Question 15

Multiple Choice

An entry debiting Accounts Payable and crediting Purchase Returns and Allowances indicates a:


A) sale on account to a customer.
B) LCM is an example of the revenue recognition principle.
C) return of goods originally sold on account to a customer.
D) return of goods originally purchased on account to the supplier.

Correct Answer:

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