Marc's Cleaning Services purchased merchandise inventory on account for $500.This transaction was properly recorded.A week later,Marc's Cleaning Services discovered a defect in the merchandise inventory and returned the merchandise inventory to the supplier for credit.As the accountant,you would tell the bookkeeper to record the return of the merchandise inventory by

Question

Quizplus · Accepted Answer

When merchandise is returned to the supplier, the cost of the merchandise inventory should be credited back to the Accounts Payable account, and the inventory account should be debited for the same amount. Therefore, option B is the correct choice. Option A would result in double counting of the credit, and options C, D, and E are not applicable in this scenario.

Marc's Cleaning Services Purchased Merchandise Inventory on Account for $500