In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting
A) Purchases.
B) Purchase Returns.
C) Purchase Allowance.
D) Inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, returns of defective merchandise by a purchaser are recorded by crediting the Inventory account, reflecting the reduction in the inventory due to the return of goods.

In a Perpetual Inventory System a Return of Defective Merchandise