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The Company Returned $200 of Damaged Merchandise

Question 10

Multiple Choice

The company returned $200 of damaged merchandise.The entry to record this under the periodic inventory method is:


A) debit Merchandise Inventory $200; credit Accounts Payable $200.
B) debit Cost of Goods Sold $200; credit Accounts Payable $200.
C) debit Accounts Payable $200; credit Purchases Returns and Allowances $200.
D) debit Accounts Payable $200; credit Merchandise Inventory $200.

Correct Answer:

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