In a perpetual inventory system, merchandise returned to vendors reduces the merchandise inventory account.

Name: In a perpetual inventory system, merchandise returned to vendors reduces the merchandise inventory account.
Brand: Quizplus
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In a perpetual inventory system, merchandise returned to vendors is recorded by reducing the merchandise inventory account. This is because the inventory is no longer on hand and needs to be accounted for as a decrease in the overall inventory of the business.

In a Perpetual Inventory System, Merchandise Returned to Vendors Reduces