Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes a: Debit to Cost of Goods Sold. Debit to Inventory. Debit to Accounts Payable. Credit to Sales Returns.

Question

Leonidas Flowers

Business

6 October, 05:25

Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes a: Debit to Cost of Goods Sold. Debit to Inventory. Debit to Accounts Payable. Credit to Sales Returns.

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Ciara Haynes · Answer 1

Debit to Accounts Payable.

Explanation:

Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes

Accounts Payable Dr.

Merchandise Inventory Cr.

In the periodic system the temporary Purchase Return and Allowances Accounts accumulates the cost of all returns and allowances during a period.

In periodic system each purchase, purchase returns, discounts, transportation in, transactions are recorded in separate temporary accounts.