A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $500 to the vendor. Which of the following would be the correct journal entry to record these returns?

A)
Purchase Returns 500
Accounts Payable 500

B)
Accounts Payable 500
Purchase Returns 500

C)
Merchandise Inventory 500
Accounts Payable 500

D)
Accounts Payable 500
Merchandise Inventory 500


D

Business

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