Under a perpetual inventory system, merchandise returned by a customer to the seller is recorded as a ________ in the books of the seller.
A)sales return
B)sales allowance
C)sales discount
D)purchase return

Question

Quizplus · Accepted Answer

A merchandise returned by a customer to the seller is recorded as a sales return in the books of the seller under a perpetual inventory system. A sales return account is debited and the customer's account is credited to reflect the return transaction. This allows the seller to keep track of the inventory that has been returned and adjust their records accordingly.

Under a Perpetual Inventory System, Merchandise Returned by a Customer