What event and inventory system may have produced the following journal entry?

Name: What event and inventory system may have produced the following journal entry?
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

The return of goods by a customer under the perpetual inventory system would produce this entry debiting Merchandise Inventory (to increase that account)and crediting Cost of Goods Sold (to decrease that account).In a periodic system,sales returns are not recorded in the merchandise inventory account,but in the sales returns account.

What Event and Inventory System May Have Produced the Following