When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit a. Inventory b. Purchases Returns and Allowances c. Accounts Receivable d. Accounts Payable

Question

Liana Pierce

Business

21 January, 21:05

When merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit a. Inventory b. Purchases Returns and Allowances c. Accounts Receivable d. Accounts Payable

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Jamison Ferrell · Answer 1

Accounts payable

Explanation:

In accounting, the term accounts payable refers to the money that is owed by a business to its suppliers, in other words, it refers to the business' short-term debts.

When merchandise is purchased on account and it is returned under the perpetual inventory system, the buyer would then debit accounts payable since it is money that the company would owe to the buyer.