Bryan Company purchased merchandize worth $1,800 on credit,terms n/30 and returned merchandise worth $200 the next day.What is the required journal entry to record the merchandise returns under the perpetual inventory system?
A) Accounts Payable 200
Purchases Returns and Allowances 200
B) Accounts Payable 200
Merchandise Inventory 200
C) Merchandise Inventory 200
Purchases Returns and Allowances 200
D) Purchases Returns and Allowances 200
Merchandise Inventory 200

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, merchandise returns are recorded by debiting Accounts Payable and crediting Merchandise Inventory to reflect the decrease in inventory.

Bryan Company Purchased Merchandize Worth $1,800 on Credit,terms N/30 and Returned