Hugh Snow, the buyer, returned merchandise to Farley Co., the seller. The entry on the books of Hugh Snow to record the return of merchandise assuming a periodic inventory system is used, would include a:
A. Credit to Account Receivable.
B. Credit to Purchase Returns and Allowances.
C. Credit to Accounts Payable.
D. Debit to Sales Returns and Allowances.
Answer: B
You might also like to view...
Bonds can earn income through interest payments and capital gains.
Answer the following statement true (T) or false (F)
Which of the following creative methods involves having participants write down their ideas several times a day?
A. Forced relationship B. Collective notebook method C. Parameter analysis D. Brainstorming
Wetlands require a permit from the Army Corps of Engineers in order to be filled or dredged
Indicate whether the statement is true or false
In future value or present value problems, unless stated otherwise, cash flows are assumed to be:
A) At the end of the time period. B) At the beginning of the time period. C) In the middle of the time period. D) Spread out evenly over a time period.