Reference no: EM133007522

Problem 1: The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit

A) Sales.
B) Purchase Returns and Allowances.
C) Merchandise Inventory.
D) Accounts Payable.

Problem 2: A buyer would record a payment within the discount period under a perpetual inventory system by crediting

A) Purchase Discounts.
B) Sales Discounts.
C) Accounts Payable.
D) Merchandise Inventory.

Problem 3: In a perpetual inventory system, cost of goods sold is recorded

A) on an annual basis.
B) on a monthly basis.
C) with each sale.
D) on a daily basis.