Which of the following is the correct journal entry for a return of goods that were purchased on account under the periodic inventory system? XX O A. Merchandise Inventory Accounts Payable XX O B. Accounts Payable XX Purchase Returns and Allowances XX O C. Purchase Returns and Allowances Accounts Payable XX XX O D. Accounts Payable XX XX Merchandise Inventory

Which of the following is the correct journal entry for a return of goods that were purchased on account under the periodic inventory system? XX O A. Merchandise Inventory Accounts Payable XX O B. Accounts Payable XX Purchase Returns and Allowances XX O C. Purchase Returns and Allowances Accounts Payable XX XX O D. Accounts Payable XX XX Merchandise Inventory

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Which of the following is the correct journal entry for a return of goods that were purchased on account under the periodic inventory system?
....
XX
O A. Merchandise Inventory
Accounts Payable
XX
O B. Accounts Payable
XX
Purchase Returns and
Allowances
XX
O C. Purchase Returns and Allowances
XX
XX
Accounts Payable
O D. Accounts Payable
XX
XX
Merchandise Inventory

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