If a purchaser returns goods purchased on account to the supplier under a periodic inventory system, the purchaser would debit:
A)Inventory and credit Accounts Payable.
B)Accounts Payable and credit Inventory.
C)Inventory and credit Accounts Receivable.
D)Accounts Payable and credit Purchase Returns.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, purchase returns are recorded by debiting Accounts Payable and crediting Purchase Returns, not Inventory.

If a Purchaser Returns Goods Purchased on Account to the Supplier