A purchase return or allowance under a perpetual inventory system is credited to:
A)Accounts Payable.
B)Purchase Returns and Allowances.
C)Inventory.
D)Purchases.

Name: A purchase return or allowance under a perpetual inventory system is credited to: A)Accounts Payable. B)Purchase Returns and Allowances. C)Inventory. D)Purchases.
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Question

Quizplus · Accepted Answer

In a perpetual inventory system, purchase returns or allowances are credited to the Inventory account to reflect the decrease in inventory levels.

A Purchase Return or Allowance Under a Perpetual Inventory System