The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit
A) Accounts Payable.
B) Purchase Returns and Allowances.
C) Purchase Discounts.
D) Merchandise Inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, when merchandise is returned, the Merchandise Inventory account is credited to decrease the inventory balance.

The Journal Entry to Record a Return of Merchandise Purchased