In a perpetual inventory system, a return of defective merchandise by a purchaser is recorded by crediting
A) Purchases.
B) Purchase Returns.
C) Purchase Allowance.
D) Merchandise Inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, returns of defective merchandise are recorded by crediting Merchandise Inventory to reflect the decrease in inventory.

In a Perpetual Inventory System, a Return of Defective Merchandise