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Returned Merchandise for Credit on Account

Question 67

Multiple Choice

Returned merchandise for credit on account. The perpetual inventory system is in use. This will be recorded with:


A) a debit to a liability and a credit to an expense.
B) a debit to an asset and a credit to an expense.
C) a debit to a liability and a credit to an asset.
D) a debit to an expense and a credit to a liability.

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