A retailer using a periodic inventory system returned $3,000 of defective merchandise which was purchased on account from one of its wholesale suppliers.The entry to record this transaction on the retailer's books would include a debit to
A)Accounts receivable.
B)Cost of goods sold.
C)Accounts payable.
D)Inventory.

Question

Quizplus · Accepted Answer

In a periodic inventory system, when merchandise is returned, the retailer debits Accounts Payable to reduce the liability owed to the supplier.

A Retailer Using a Periodic Inventory System Returned $3,000 of Defective