Using a perpetual inventory system, the buyer's journal entry to record the return of merchandise purchased on account includes a:

Select one:

A. Credit to Purchase Returns

B. Credit to Inventory

C. Credit to Accounts Payable

D. Credit to Cost of Goods Sold

On January 5, BTL Company purchased 11 all-terrain vehicles at a cost of $1,800 each. On February 12, they sold 8 vehicles for $2,300 per unit. If BTL uses a perpetual inventory system, the journal entry to record the sale on February 12th would include all of the following except:

Select one:

A. A credit to Purchases for $14,400

B. A debit to the Cost of Goods Sold for $14,400

C. A credit to Sales Revenue for $18,400

D. A credit to Inventory for $14,400

On June 15, a food wholesaler sold 100 cases of canned soup to Happy Foods for $30 per case with terms of 2/10, n/30. On June 17, Happy returned 20 cases of damaged inventory (and received full credit), along with a check for the amount due for the purchase. Given this information, the journal entry by Happy Foods on June 17 will:

Select one:

A. Debit Accounts Receivable for $3,000

B. Credit Cash for $2,940

C. Debit Cash for $2,352

D. Credit Inventory for $648

A manufacturing company sells goods to a merchandising company, which in turn, sells the goods to a retail customer. The Sales Discounts account is debited by the merchandising company when:

Select one:

A. Defective merchandise is returned by the merchandiser to the manufacturer

B. Defective merchandise is returned by the retail customer to the merchandiser

C. Payment is made to the manufacturer within the discount period

D. The retail customer pays within the discount period