Under a perpetual inventory system part of the merchandise purchased on account at an earlier time is now being returned. None of the goods have been paid for. The correct journal entry for this return will be a

debit to Cash and a credit to Purchases
debit to Merchandise Inventory and a credit to Accounts Payable
debit to Accounts Payable and a credit to Merchandise Inventory
debit to Purchases Returns and a credit to Cost of Goods Sold

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The detailed answer for the above question is provided below Correct answer C debit to Accounts ... View the full answer