Ramirez Company returns merchandise previously purchased on account. It had not yet been paid for. Ramirez uses the perpetual inventory system. Which of the following answers reflects the effects on the financial statements of only the purchase return?

	Balance Sheet					Income Statement					Statement of Cash Flows
	Assets	=	Liabilities	+	Stockholders Equity	Revenue		Expense	=	Net Income
A.	+		n/a					n/a			+OA
B.					n/a	n/a		+			n/a
C.	+/		n/a		n/a	n/a		n/a		n/a	+OA
D.					n/a	n/a		n/a		n/a	n/a

Multiple Choice

• Option C

• Option A

• Option D

• Option B