Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes a: D) Credit to Sales Returns. B) Debit to Inventory. A) Debit to Cost of Goods Sold. C) Debit to Accounts Payable.
Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes a: D) Credit to Sales Returns. B) Debit to Inventory. A) Debit to Cost of Goods Sold. C) Debit to Accounts Payable.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter11: Work Sheet And Adjusting Entries
Section: Chapter Questions
Problem 3DQ: Using the perpetual inventory system, what account is debited when a business finds that its...
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1. Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes a:
D) Credit to Sales Returns.
B) Debit to Inventory.
A) Debit to Cost of Goods Sold.
C) Debit to Accounts Payable.
Expert Solution
Step 1
Perpetual inventory system: It is a method of inventory management that records real time transactions of inventory sold or received through the use of technology.
Periodic inventory method: It is a inventory valuation method in which inventory is updated at the end of reporting period. In this method, inventory account is not updated after every sale and purchase transaction.
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