A firm using the perpetual inventory method returned defective merchandise costing $2,000 to one of its suppliers. The entry to record this transaction will include a debit to

Question

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Since the firm is returning defective merchandise to its supplier, it means that the merchandise was purchased on credit from the supplier. Therefore, the entry to record this transaction will include a debit to the Accounts Payable account to reduce the amount owed to the supplier.

A Firm Using the Perpetual Inventory Method Returned Defective Merchandise