Accounting

When a purchaser returns goods to a​ vendor, if the purchaser uses a perpetual inventory system it will record a

Credit to its Merchandise Inventory account

A purchase return is a deduction from the sales price granted to the purchaser as incentive to keep goods that are not​ "as ordered".

False

Assume on January January 1 Smart Touch Learning purchased $7,000 of merchandise on account from a vendor with credit terms of​ 1/10, n/30. On January January 3 Smart Touch Learning returned half of the merchandise because of damages in shipping. On January January ​8, Smart Touch Learning pays the remaining amount. Which of the following is true if Smart Touch Learning is recording journal entries using a perpetual inventory​ system?

None of the above

Under a perpetual inventory​ system, the purchaser will record the same journal entry for a purchase allowance as it would for a purchase return.

True