Under the perpetual inventory system,the return of goods from a customer would increase Cost of Goods Sold and decrease Merchandise Inventory.

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Quizplus · Accepted Answer

Under the perpetual inventory system, the return of goods from a customer would actually decrease Cost of Goods Sold and increase Merchandise Inventory, as the returned goods are added back to inventory and deducted from the cost of goods sold.

Under the Perpetual Inventory System,the Return of Goods from a Customer