The CQ Company uses the perpetual method for inventory. All sales and purchases are on credit. The CQ accounting for a sale of merchandise would include:

Select one:

a.

Debit Purchase Return, Credit Accounts Receivable

b.

Debit Accounts Payable, Credit Purchases Receivable

c.

Debit Cost of Goods Sold, Credit Inventory

d.

Debit Accounts Payable, Credit Inventory

e.

Debit Accounts Payable, Credit Purchase Return