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Problem 1: A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $400 to the vendor (prior to payment). Which of the following would be the correct journal entry to record these returns?
a. Merchandise inventory 400accounts payable 400
b. accounts payable 400Merchandise inventory 400
c. accounts payable 400purchase returns 400
d. purchase returns 400accounts payable 400
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Terry Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO. During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory at year-end prices was $143,360, and the price index was 112 (Price Index f..
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