Question

Using a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a ______. (Check all that apply and answer from the viewpoint of the buyer.)

Answer 1

In a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a debit to Accounts Payable to reduce the amount owed to the supplier and a credit to Inventory to decrease the quantity of goods on hand.

Step-by-step explanation:

In a perpetual inventory system, the entry to record the return of goods you previously purchased on account includes a debit to Accounts Payable to reduce the amount owed to the supplier and a credit to Inventory to decrease the quantity of goods on hand. These entries are made from the viewpoint of the buyer.