Under a perpetual inventory system, the entry to record the return of inventory sold on account for $360 with a cost of $210 would be recorded by the seller as a:
A)credit to Accounts Receivable for $210.
B)credit to Sales Returns and Allowances for $210.
C)debit to Sales Revenue for $360.
D)debit to Inventory for $210.

Question

Quizplus · Accepted Answer

The correct entry involves debiting Inventory for $210 to bring the returned inventory back onto the balance sheet at its cost. This reflects the restoration of the inventory that was previously sold.

Under a Perpetual Inventory System, the Entry to Record the Return