In a perpetual inventory system, merchandise returned to vendors reduces the inventory account.

Name: In a perpetual inventory system, merchandise returned to vendors reduces the inventory account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a perpetual inventory system, merchandise returned to vendors is recorded by crediting the inventory account and debiting the accounts payable account. This reduces the amount of inventory on hand in the accounting records.

In a Perpetual Inventory System, Merchandise Returned to Vendors Reduces