When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a

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When a buyer returns merchandise purchased for cash, the buyer is essentially returning cash to the seller in exchange for the merchandise. Therefore, the buyer will record the transaction as a debit to Cash (to decrease the amount of cash they have) and a credit to Inventory (to increase the amount of inventory they have). Option A is incorrect because the buyer did not purchase the merchandise on credit (i.e. on account) and therefore would not credit Accounts Payable. Option C is incorrect because the buyer did not make a sale and therefore would not credit Sales. Option D is incorrect because the buyer is not paying an account payable and therefore would not debit Sales.

When a Buyer Returns Merchandise Purchased for Cash, the Buyer