In a perpetual inventory system, when merchandise is returned to the supplier, Cost of Goods Sold is debited as part of the transaction.

Name: In a perpetual inventory system, when merchandise is returned to the supplier, Cost of Goods Sold is debited as part of the transaction.
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In a perpetual inventory system, when merchandise is returned to the supplier, the Cost of Goods Sold is not affected. Rather, the inventory account and accounts payable are adjusted.

In a Perpetual Inventory System, When Merchandise Is Returned to the Supplier