A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record the return would include ________
A) a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000
B) a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances
C) a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000
D) a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000
B
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Indicate whether the statement is true or false
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A) Cause and effect B) Generalization C) Circular reasoning D) Mistaken assumptions E) Faulty analogies
Which of the following best expresses the role of goodwill in business?
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Gwen purchased an interesting life insurance policy. A minimum interest rate is guaranteed on the cash value, but additional interest may be credited based on the investment performance of a group of common stocks
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