A company returns inventory previously purchased on account and not yet paid for. Which accounts on the purchaser's books are affected? 

a) Inventory decreases and cash increases Purchase returns increases, and accounts payable,

 b) inventory and cost of goods sold all decrease 

c) Purchase returns and cash both increase, and inventory and cost of goods both decrease 

d) Only inventory and accounts payable both decrease 

e) Only purchases and accounts payable both decrease 

f) Purchase returns increases, and accounts payable and inventory both decrease

Answer rating: 100% (QA)

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