If a company records merchandise it returns to suppliers in the general journal, then
A) a posting must be made only to the accounts payable control account.
B) a posting must be made only to the accounts payable subsidiary ledger account.
C) a dual posting must be made.
D) there will be a debit to Merchandise Inventory.

Question

Quizplus · Accepted Answer

When merchandise is returned to suppliers, it affects both Merchandise Inventory and Accounts Payable. Therefore, a dual posting must be made to reflect the decrease in Merchandise Inventory and the decrease in the amount owed to the supplier in the Accounts Payable account.

If a Company Records Merchandise It Returns to Suppliers in the General