Reference no: EM132695482

Problem 1: In a perpetual inventory system. From the buyer's standpoint, a return of defective merchandise is recorded by crediting

A) Purchases

B) Purchase Returns

C) Purchase Allowance

D) Merchandise Inventory

E) None of the above

Problem 2: In a perpetual inventory system, which of the following is not part of the series of journal entries made by the seller when merchandise is sold on credit?

A) Credit the Cost of Goods Sold account

B) Credit the Sales account

C) Credit the Merchandise Inventory account

D) Debit the Accounts Receivable account

E) None of the above