If a purchaser returns goods purchased on account to the supplier under a perpetual inventory system, the purchaser would debit
A) Cost of Goods Sold.
B) Accounts Payable.
C) Merchandise Inventory.
D) Purchase Returns.

Question

Quizplus · Accepted Answer

Under a perpetual inventory system, when a purchaser returns goods purchased on account, the purchaser would debit Accounts Payable to decrease the liability owed to the supplier.

If a Purchaser Returns Goods Purchased on Account to the Supplier