When a company uses a perpetual inventory system,purchase returns will be recorded by:
A)debiting inventory.
B)debiting purchase returns.
C)crediting accounts payable.
D)crediting inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, inventory is constantly updated with each transaction, including purchase returns. When a purchase is returned, the inventory account is credited to reflect the decrease in inventory. Therefore, the correct option is to credit inventory.

When a Company Uses a Perpetual Inventory System,purchase Returns Will